Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
On Thursday, BMO Capital Markets reinstated its coverage on Premium Brands Holdings Corp (TSX:PBH:CN) (OTC: PRBZF) with an Outperform rating and established a price target of Cdn$94.00. The reinitiation of coverage by analyst Stephen MacLeod follows the company’s successful completion of a $150 million 5.50% convertible debenture offering, which is set to mature on March 31, 2030, and is convertible at $126.15.
Premium Brands Holdings Corp intends to use the net proceeds from the debenture offering to reduce the amount drawn on its Revolving Credit facility. This strategic financial maneuver is aimed at providing the company with the necessary flexibility to manage the payout of the approximately $172.5 million 4.65% convertible debentures that are due to mature on April 30, 2025.
According to MacLeod’s analysis, the recent financial developments have been anticipated in BMO Capital’s modeling, resulting in no changes to their earnings estimate for the year 2025. However, there has been a slight reduction in the earnings estimate for the year 2024. The analyst expects further details to emerge on Friday, March 21, with the release of Premium Brands’ fourth-quarter results for the year 2024.
The resumption of coverage and the setting of a price target come at a pivotal moment for Premium Brands as the company navigates its financial obligations and seeks to maintain operational flexibility. The market is anticipated to closely monitor the forthcoming earnings update to assess the company’s performance and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.