12:02 PM EST, 11/05/2024 (MT Newswires) -- BMO Capital Markets on Tuesday maintained its market-perform rating on the shares of STEP Energy Services ( SNVVF ) while raising its price target to C$5.00 following a go-private offer from its largest shareholder.

"STEP announced that it has entered into an arrangement agreement with its largest shareholder, ARC Financial, to take the company private for $5.00/sh in cash (~40% premium to latest closing). That said, we believe potential exists for another bidder to enter the ring, particularly given STEP's valuation remains relatively inexpensive post-bid (~2.4x EV/EBITDA and ~15% FCF yield on 2024 BMOe) vs. peers in the 3-4x range. Post announcement, we are increasing our target price to $5.00 ($4.50 prior), in line with the current go-private bid," analyst John Gibson 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)

Price: 5.07, Change: +0.07, Percent Change: +1.40