11:08 AM EDT, 08/18/2025 (MT Newswires) -- National Bank of Canada reiterated its outperform rating on the shares of Chemtrade Logistics Income Fund (CHE-UN.TO) while raising its price target price to $17.50 from $17.00 after it reported second quarter results on Thursday.

The bank said with the closing of the acquisition of Polytec expected in the fourth quarter, it expects "conservative, minimal synergy realization" in the first year of ownership.

"Though CHE still has irons in the fire for future deals, there should be no action in the short term, as the focus is on integrating acquisitions and delevering (pro forma leverage at 2.4x)," said analyst Zachary Evershed. "CHE's strong FCF will still allow them to remain active on the NCIB, where management reaffirmed they intend to be aggressive given CHE's attractive valuation."

National Bank said the higher estimates and the addition of Polytec sees its target rise to $17.50 on an unchanged 6x 2026e EV/EBITDA, equivalent to a 7.8% free cash flow yield and replicated in its discounted cash flow using an 11.9% discount rate.

"Given the broadly positive outlook on supply/demand and management alignment on addressing compressed valuation through the NCIB, we reiterate our Outperform rating," said Evershed.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 12.76, Change: +0.52, Percent Change: +4.25