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On Wednesday, BMO Capital Markets adjusted its outlook on Superior Plus Corp (TSX:SPB:CN) (OTC:SUUIF), increasing the price target to Cdn$10.00, up from the previous Cdn$9.00, while reaffirming the Outperform rating. The revision follows Superior Plus Corp’s announcement of a record first quarter in adjusted EBITDA, which saw an 11% year-over-year increase, surpassing consensus estimates by 6%.
The company’s strong performance was partly attributed to colder-than-expected weather conditions, which boosted demand. Additionally, the positive results from Certarus, a subsidiary of Superior Plus, contributed to the overall success. The company is also beginning to experience benefits from its strategic "Superior Delivers" initiatives.
Superior Plus Corp has been focusing on enhancing operational efficiency, lowering its debt, and repurchasing shares as part of its ongoing efforts to improve its financial standing. These actions have been pivotal in the company’s recent turnaround.
Following the first quarter accomplishments, BMO Capital Markets has raised its target price for Superior Plus stock, taking into account a projected 6.0x 2026 EV/EBITDA multiple. The firm’s continued confidence in Superior Plus is reflected in the reiterated Outperform rating, signaling a positive outlook for the company’s stock.
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