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K-Bro Linen to Benefit From Canada's Aging Population, Says Stifel Canada
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K-Bro Linen to Benefit From Canada's Aging Population, Says Stifel Canada
Sep 21, 2025 3:04 AM

01:59 PM EDT, 09/19/2025 (MT Newswires) -- K-Bro Linen ( KBRLF ) is a provider of linen and laundry services for the hospitality and healthcare sectors, servicing primarily hotels and hospitals in Canada and the UK at a ~50/50 geographic split.

"We identify KBL as a beneficiary of the aging population given its outsized exposure to hospitals, where inpatient hospital care volumes will likely accelerate," writes Stifel Canada analyst Justin Keywood.

Ontario has committed $56 billion through 2035 (~$5.6 billion/p.a.) to build 50 major hospital projects and add 3,000 new hospital beds. K-Bro being the superior provider in the region, it will likely win the lion's share of this business, providing a significant organic growth opportunity on home turf, Keywood adds.

"Right now, we see significant value in the shares at a historically low 7.5x NTM EV/EBITDA . . . As these supportive sector trends materialize, a series of potential RFP renewal wins in 2026 and a continuation of its accretive M&A program should drive shares higher in the near-term"

Price: 36.63, Change: +0.22, Percent Change: +0.60

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