01:25 PM EDT, 09/18/2024 (MT Newswires) -- Stifel GMP on Wednesday reiterated its buy rating on the shares of Mattr ( MTTRF ) and its C$20.00 price target after the company said it is selling its Brazilian pipe-coating business.

"MATR announced the sale of its Brazilian pipe coating business for C$24 mm to complete its strategic review. The sale price reflects ~2.5% of the market cap, and we believe there was no value ascribed to this asset prior to the sale announcement. The transaction is not material to our estimates as we estimate the notable change is a reduction of net debt in 2024E and 2025E. We expect the company to use the proceeds to fund its multi-faceted capital allocation priorities of organic investments, M&A and share buybacks. We are maintaining our BUY rating and TP of $20.00 following this update," analyst Ian Gillies wrote.

(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)

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