Cascades (TSE:CAS) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Cascades shares reached a new 52-week high after National Bank Financial raised its price target from C$13 to C$17, although it maintained a “sector perform” rating. The stock traded as high as C$17.53.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of C$15.93. RBC, TD, Desjardins and CIBC recently raised their targets or ratings, though price targets range from C$14.50 to C$19.
• Insider Laurent Lemaire purchased 23,302 shares, while Cascades reported quarterly revenue of C$1.22 billion and EPS of C$0.24. The company also announced a quarterly dividend of $0.12 per share, representing a 2.8% annualized yield.

Cascades Inc. (TSE:CAS - Get Free Report) shares hit a new 52-week high on Tuesday after National Bank Financial raised their price target on the stock from C$13.00 to C$17.00. National Bank Financial currently has a sector perform rating on the stock. Cascades traded as high as C$17.53 and last traded at C$16.88, with a volume of 2172594 shares. The stock had previously closed at C$17.02.

A number of other brokerages also recently weighed in on CAS. TD upped their target price on Cascades from C$13.00 to C$15.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Royal Bank Of Canada boosted their price objective on shares of Cascades from C$15.00 to C$18.00 and gave the company an "outperform" rating in a research report on Monday. Scotiabank cut their target price on shares of Cascades from C$16.75 to C$14.50 and set an "outperform" rating for the company in a research report on Monday, April 13th. Desjardins boosted their price target on shares of Cascades from C$13.00 to C$19.00 and gave the company a "hold" rating in a report on Monday. Finally, Canadian Imperial Bank of Commerce upgraded Cascades from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of C$15.93.

Insider Activity at Cascades

In other Cascades news, insider Laurent Lemaire purchased 23,302 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of C$10.52 per share, for a total transaction of C$245,137.04. Following the acquisition, the insider owned 7,837,637 shares of the company's stock, valued at C$82,451,941.24. This trade represents a 0.30% increase in their ownership of the stock. 23.78% of the stock is currently owned by company insiders.

Key Headlines Impacting Cascades

Here are the key news stories impacting Cascades this week:

• Positive Sentiment: Royal Bank of Canada raised its price target on Cascades from C$15.00 to C$18.00 and upgraded its stance to “outperform.” The new target implies approximately 5.9% upside from the cited C$16.99 share price. BayStreet.CA analyst ratings
• Positive Sentiment: Desjardins increased its price target substantially, from C$13.00 to C$19.00. Although it maintained a “hold” rating, the revised target represents approximately 11.8% potential upside and indicates improved expectations for the company. BayStreet.CA analyst ratings
• Neutral Sentiment: National Bank Financial raised its target from C$13.00 to C$17.00 but retained a “sector perform” rating. Its revised target suggests essentially no remaining upside from the cited share price, making this a more cautious assessment than the RBC and Desjardins views. BayStreet.CA analyst ratings
• Neutral Sentiment: The other headlines concern weather, wildfires, haze and Amtrak service in areas known as the Cascades. They do not refer to Cascades Inc. and therefore are unlikely to affect CAS directly.

Cascades Stock Performance

The company has a market cap of C$1.71 billion, a P/E ratio of 16.88, a P/E/G ratio of 0.56 and a beta of 1.04. The firm has a 50 day moving average price of C$12.22 and a 200-day moving average price of C$11.91. The company has a debt-to-equity ratio of 111.08, a quick ratio of 0.86 and a current ratio of 1.48.

Cascades (TSE:CAS - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported C$0.24 earnings per share for the quarter. The business had revenue of C$1.22 billion for the quarter. Cascades had a return on equity of 7.24% and a net margin of 2.64%. On average, research analysts predict that Cascades Inc. will post 1.2959309 EPS for the current year.

Cascades Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, September 3rd will be issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Thursday, August 20th. Cascades's dividend payout ratio is currently 48.00%.

Cascades Company Profile

Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs approximately 9,000 talented people across a network of 60 production units in North America. With its participative management, half a century of experience in recycling, and ongoing efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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