06:23 AM EST, 03/06/2024 (MT Newswires) -- National Bank of Canada in a Tuesday note said Ag Growth International Inc. ( AGGZF ) 's fourth-quarter 2023 revenue missed estimates but showed stronger margins and a good EBITDA outlook.

Revenue came in at $379 million, missing bank and Street estimates of $411 million and $413 million, respectively.

Consolidated adjusted EBITDA amounted to $73.1 million, exceeding the bank's estimate of $69.8 million and Street estimate of $72.5 million.

Adjusted EPS of $1.70 was also above National Bank's forecast of $0.95 and the Street's forecast of $1.21.

Backlog jumped by 25% year over year to $747 million, with strength in both the Farm and Commercial segments improving revenue visibility significantly, the bank noted.

Management expects 2024 EBITDA of at least $310 million, suggesting the significantly higher margin profile is sustainable in the near term, National Bank said.

The bank gave Ag Growth ( AGGZF ) an outperform rating and a $75.00 price target.