On Monday, it shares dropped over 7 per cent with the premarket announcement chief executive Mike Crawley will step down from the top job later this year. Board chair John Brace, who was CEO between 2003 and 2018, has been appointed executive chair to act as a bridge between Mr. Crawley and his successor.
“We believe the management changes should not impact NPI’s progress with its in-construction and development assets and there is adequate support and bench strength for the transition of the CEO role,” added Mr. Merer. “However, with the search for a new CEO and CFO ongoing, investors may be cautious in the near term.”
“Our core ROE forecasts increase by 0.25 per cent and 0.48 per cent to 16.0 per cent and 15.9 per cent in 2024 and 2025, respectively,” he added. “We update our model to reflect a $37 million reduction in core earnings in 2024 and a $50 million reduction in core earnings in 2025 which decrease our core earnings expectations and are more than offset by 90 million in share buybacks by the end of Q4/24 .
Mr. Davis also emphasized the Calgary-based company’s management” continues to deliver on key priorities including enhanced shareholder returns via the share buyback.” Mr. Goldman thinks top-line estimates from the Valcourt, Que.-based company could “be conservative” and believes the market is “underestimating margin resilience.”
He explained: “What’s our margin of safety? Our base case is more conservative than peer guidance ; DOO has a ten-year track record of outperforming the industry; there is still plenty of runway for SSV share gains; DOO’s mix skews premium which is faring better than value ; structural margin enhancements; management’s strategy to proactively manage channel inventory and limit promo on current units should somewhat insulate margins and could support share gains; and we believe the company has...
“Recent metal strength has shown senior miners the most love, now trading up to 1.4 times P/NAV on average, a reward we think is solely due to capital discipline accompanied by a disincentive to provide growth ,” he added. “With the mid-tier sub-sector trading at 0.