BMO Capital Markets Downgrades Chemtrade Logistics Income Fund (TSE:CHE.UN) to Market Perform

Key Points

• BMO Capital Markets downgraded Chemtrade from "Outperform" to "Market Perform" and set a C$18.50 price target, implying roughly a 21% upside from current levels.
• Analyst views are mixed: Raymond James also downgraded and cut its target to C$15.00, while National Bank raised its target to C$23.50 and kept an outperform; the consensus rating is Hold with a C$18.14 average target.
• Shares traded at C$15.27 (market cap C$1.71B, PE ~12.5) but the company has high leverage (debt-to-equity ~128%) and weak liquidity (current ratio ~0.40), suggesting balance-sheet risk despite valuation support.

Chemtrade Logistics Income Fund (TSE:CHE.UN - Get Free Report) was downgraded by analysts at BMO Capital Markets from an "outperform" rating to a "market perform" rating in a research report issued to clients and investors on Wednesday,BayStreet.CA reports. They currently have a C$18.50 price target on the stock. BMO Capital Markets' price objective would indicate a potential upside of 21.15% from the stock's current price.

Several other equities research analysts also recently weighed in on CHE.UN. Raymond James Financial downgraded shares of Chemtrade Logistics Income Fund from a "strong-buy" rating to a "market perform" rating and decreased their target price for the stock from C$21.00 to C$15.00 in a research note on Tuesday. National Bank Financial increased their target price on shares of Chemtrade Logistics Income Fund from C$18.00 to C$23.50 and gave the stock an "outperform" rating in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of C$18.14.

Chemtrade Logistics Income Fund Stock Performance

Shares of CHE.UN stock traded up C$0.77 during trading hours on Wednesday, hitting C$15.27. The stock had a trading volume of 947,728 shares, compared to its average volume of 373,530. The firm has a market capitalization of C$1.71 billion, a PE ratio of 12.52 and a beta of 0.56. Chemtrade Logistics Income Fund has a twelve month low of C$9.14 and a twelve month high of C$17.96. The stock's 50 day moving average is C$15.81 and its 200 day moving average is C$14.81. The company has a debt-to-equity ratio of 128.02, a current ratio of 0.40 and a quick ratio of 0.48.

About Chemtrade Logistics Income Fund

Chemtrade Logistics Income Fund provides industrial chemicals and services to customers in North America and around the world. The company organized into four main operating segments: Sulphur Products and Performance Chemicals (SPPC), Water Solutions and Specialty Chemicals (WSSC), Electrochemicals, and Corporate. It generates maximum revenue from Electrochemicals segment. Chemtrade operates in Canada, the United States, and South America of which maximum revenue comes from the United States. SPPC markets, remove and produces merchant, regenerated and ultra-pure sulphuric acid, liquid sulphur dioxide, sodium hydrosulfite and provides other processing services.

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