12:39 PM EDT, 07/30/2024 (MT Newswires) -- Stifel GMP on Tuesday reiterated its buy rating on the shares of ADENTRA ( HDIUF ) while raising its price target to C$55.00 from C$50.00 after the architectural-products distributor agreed to acquire Woolf Distributing.

"ADEN has expanded its U.S. Midwest operating footprint through the $140 mm acquisition (incl. leases) of Woolf Distributing Company. Strategically, it grows the company's presence in the doors category, adds a new vertical in outdoor living, is margin accretive and neutral to return metrics initially (with potential for upside). We estimate 2025E EPS accretion of 9.7% to $3.90/sh. Moreover, the acquisition is 5.6% accretive relative to our 2025E EPS prior to the bought deal in June 2024.The stock was up 9.8% in the past month , and we expect momentum to continue given the accretion metrics put forth and inexpensive valuation. We are increasing our target price to C$55.00/sh from C$50.00, using an unchanged 10.5x 2025E P/E target multiple. Our BUY rating is maintained," analyst Ian Gillies wrote.

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Price: 44.01, Change: +3.08, Percent Change: +7.51