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RBC raises Westshore Terminals rating, price target to Cdn$30

Published 20/05/2025, 08:24
RBC raises Westshore Terminals rating, price target to Cdn$30
WTE
0.07%

On Tuesday, RBC Capital Markets adjusted its stance on Westshore Terminals Investment Corp. (WTE:CN) (OTC:WTSHF), elevating the stock rating from Sector Perform to Outperform. Accompanying the rating upgrade, the firm also increased the price target from Cdn$23.00 to Cdn$30.00. The revision comes in response to a recent development regarding the Grassy Mountain Coal Project.

Last week, the Alberta Energy Regulator announced an unexpected approval that reinitiated the approval process for the Grassy Mountain Coal Project. While the approval does not ensure the project’s final green light, RBC Capital’s analyst believes the potential benefits of this project have not been fully reflected in Westshore Terminals’ current stock price.

The analyst from RBC Capital highlighted the strong free cash flow (FCF) yield of 8% and the lack of debt on Westshore Terminals’ balance sheet as additional factors providing downside protection for investors. These elements contribute to the firm’s confidence in the company’s financial health.

In the statement provided, the analyst remarked, "The Alberta Energy Regulator made an unexpected announcement last week - approving the Grassy Mountain Coal Project, which restarts the approval process although does not guarantee the project ultimately goes through. Nevertheless, we do not see this upside as priced into shares at current levels and this is the driver of our upgrade today to OP (from SP). And even if the project does not go through, strong underlying FCF (8% yield) and no debt protect investors to the downside. Price target to $30 (from $23); upgrading Westshore shares to OP."

Investors and market watchers will likely monitor Westshore Terminals’ share performance and any further developments regarding the Grassy Mountain Coal Project, as these could influence the company’s financial outlook and stock valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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