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On Tuesday, BMO Capital Markets adjusted its outlook on Wajax Corp (WJX:CN) (OTC:WJXFF), increasing the price target from C$20.00 to C$22.00, while maintaining a Market Perform rating on the company’s shares. The adjustment follows Wajax’s recently reported first-quarter results for 2025, which surpassed expectations despite ongoing industry challenges.
Analysts at BMO Capital highlighted that Wajax’s Q1/25 performance was stronger than anticipated, showcasing the management’s capacity to steer through volatile market conditions. The report acknowledged the company’s solid results but also pointed out the persistent uncertainty in the near term. The industry is facing tough conditions, and there is limited visibility into future demand, which could impact the company’s performance moving forward.
The valuation of Wajax remains modest, according to BMO Capital, with expectations that the stock’s multiple will continue to hover at the lower end of its historical spectrum. The firm’s decision to raise the price target to C$22.00 is attributed to upward revisions in estimates and the advancement of their valuation base year.
BMO Capital’s commentary on the rating and price target change emphasized the balance between Wajax’s recent achievements and the ongoing challenges within the industry. The analyst stated, "Solid Q1/25 Results, but Near-Term Uncertainty Remains Elevated; Q1/25 results were better than feared and demonstrated management’s ability to navigate more turbulent markets. However, industry conditions remain challenging and visibility into near-term demand is limited. Valuation is undemanding, but the multiple is likely to remain near the low end of its historical range. We rate WJX Market Perform. Target (NYSE:TGT) price increased to $22 (prior:$20) due to upward estimate revisions and rolling forward our valuation base."
Investors and market observers will continue to watch Wajax’s performance closely, especially in light of the evolving industry conditions that may influence the company’s operations and stock valuation.
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