North American Energy Partners (NOA) Target Price Raised, Stock Soars
February 02, 2010 5:06 PM
Stephens analyst Matt Duncan reiterated his Overweight/Vol. rating for North American Energy Partners Inc. (NYSE: NOA).
Duncan wrote a glowing report on North American Energy Partners, which beat most forecasts.
Of particular interest was the fact that even though North American Energy Partners beat most estimates, it still trades at a significant discount to its peers.
"NOA currently trades at a calendar 2010 EV/EBITDA multiple of just 3.4x, a significant discount to its engineering and construction peers, which trade at an average 2010 EV/EBITDA multiple of 5.6x. We continue to believe a number of potential catalysts could emerge over the next year that should help NOA close some (or all) of the valuation gap between it and its peers. We are raising our price target to $12 (from $10), which represents a calendar 2010 EV/EBITDA of 4.9x our current calendar 2010 EBITDA outlook for NOA," Duncan wrote.
Duncan also raised North American Energy Partners ' target price from $10 to $12. The stock price was more 20% for the day as it reached a 52 week high of $9.45 before falling slightly.
