06:57:24 EDT Sat 27 Apr 2024
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Globe says Airboss shares seen remaining under pressure

2023-10-13 08:05 ET - In the News

The Globe and Mail reports in its Friday edition that National Bank analyst Ahmed Abdullah has lowered his recommendation for Airboss of America to "sector perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Abdullah trimmed his share target by $1.50 to $6, eight cents under the consensus. Mr. Abdullah says in a note: "Airboss Rubber Solutions likely saw lighter than expected volumes in July with a limited bounce back in August and September as demand softened. The UAW auto strike still presents a risk to Airboss Engineered Products forecasts. Airboss Defense Group continues to see depressed operating leverage due to the lack of big awards and before the benefit of the approximately $5-million annualized savings kicks in. ... With limited visibility as to when volumes might bounce back and with a weaker macro backdrop, we think Airboss shares will remain under pressure before a turnaround can materialize." The Globe reported on July 28 that Canaccord analyst Yuri Lynk had lowered his recommendation for Airboss of America to "hold" from "buy." In the item, Mr. Lynk said he saw "heightened uncertainty" within Airboss's outlook. The shares could then be had for $5.05.

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