11:20 AM EST, 03/05/2024 (MT Newswires) -- Stifel GMP on Tuesday reiterated its buy rating on the shares of Doman Building Materials Group ( CWXZF ) while raising its price target to C$11.00 from C$9.25 after the company acquired the assets of Southeast Forest Products Treated in Indiana and Alabama.

"Doman has executed a bolt-on transaction of Southeast Forest Products, which will strategically improve their operations in the U.S. through the expansion of existing geographies in the South and Midwest. We estimate the transaction to be 9.0% accretive to our 2025E EPS. Doman has done a good job post pandemic of structurally improving EBITDA margins (23-25E 8.0%, 17-19: 5.6%) and ROE (23-25E 12.5%, 17-19: 7.8%), which should result in a higher trading multiple. We are increasing our target price to $11.00/sh from $9.25/sh due to higher estimates and modestly increased target multiples that better align with historical averages. We maintain our BUY rating," analyst Ian Gillies noted.

Price: 8.30, Change: +0.08, Percent Change: +0.97