10:40 AM EDT, 03/15/2024 (MT Newswires) -- National Bank said Friday that it has revised estimates on Mattr Corp. ( MTTRF ) to reflect fourth-quarter results and management's commentary.

The company's shares rose 4% on last look on Friday.

"Our annual estimates remain mostly unchanged, though we shuffle our expectations to better reflect the puts and takes on revenue timing discussed by management during the conference call and tweak our profitability estimates," the analysts said.

National Bank said it expects Composite Technologies' first-quarter adjusted EBITDA to fall modestly quarter over quarter as gains in international Flexpipe sales are insufficient to offset continued lower production and shipment of Xerxes tanks compounded by typical seasonal weakness.

For Connection Technologies, National Bank is expecting a sequential improvement in the first quarter, mainly because of a strengthening of industrial and infrastructure markets in North America.

Management also expects revenues to move higher sequentially in the second quarter and profitability in the first half is expected to be modestly impacted by one-time costs associated with the company's MEO initiatives, resulting in margin compression in Q1.

National Bank is now expecting capex for 2024 to be $98 million, instead of the previously expected $90 million, in line with guidance for $90 million to $100 million.

While reiterating its outperform rating, National Bank has raised the price target to $21.50 from $20.50, based on an updated sum-of-parts valuation ascribing a 6.5x multiple to Composite as it moves past issues, equivalent to a 6.0% FCF yield.

National Bank is not forecasting an unannounced M&A or NCIB activity.

Price: 16.58, Change: +0.72, Percent Change: +4.54