Street Calls of the Week
Investing.com - RBC Capital initiated coverage on Alaris Equity Partners Income Trust (TSX:AD-U) with a Sector Perform rating and a price target of Cdn$20.00.
The investment firm cited "limited visibility on upside catalysts in the near-term" as the primary reason for the neutral stance on the income trust.
RBC Capital noted that Alaris currently trades at 0.8 times current price-to-book value, which it believes "appropriately reflects the company’s BVPS growth outlook (in-line with historical averages) relative to ROIC, and overall portfolio health."
The firm highlighted that Alaris is an income trust with a 7% yield, suggesting the distribution appears secure for now.
RBC Capital analyst Bart Dziarski added that "ample buffer exists before the distribution is at risk," indicating confidence in the sustainability of the company’s current dividend payments.
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