Interactive Brokers shares jump as it secures spot in S&P 500
On Friday, UBS initiated coverage on Acuren Corp. (NYSE:TIC) with a Neutral rating and set a price target of $13.00. Joshua Chan, an analyst at UBS, provided insights into the company’s operations and market positioning. Acuren Corp. is recognized as a leading provider of nondestructive testing (NDT) and rope access services, primarily serving the oil & gas sector and other industrial markets.
In his commentary, Chan noted that Acuren aims to achieve a stable growth pattern within historically fluctuating end markets. He acknowledged the possibility of the company maintaining mid-single-digit organic growth, with a 5% increase expected in both 2023 and 2024. However, he also pointed out that for Acuren to realize such growth, it would need to outperform its market segment, which requires more evidence of the company’s performance as a public entity to build a stronger belief in its potential. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 3.62, though it faces profitability challenges in the near term.
The UBS analyst highlighted that Acuren’s current return on invested capital (ROIC) stands at approximately 8%, which falls short of the 16% average observed across their coverage. Despite this, there is an opportunity for Acuren to enhance its ROIC in the future.
Chan also compared Acuren’s valuation to its peers, noting that the stock is trading at around 10 times the next twelve months’ (NTM) EBITDA. This valuation is in line with industry counterparts, and it anticipates an NTM+1 EBITDA close to UBS’s estimate of $217 million. Based on this evaluation, the analyst believes that the risk/reward profile for Acuren’s shares is balanced, suggesting that the current stock price fairly reflects the company’s prospects and challenges.
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