The Globe and Mail reports in its Thursday edition that National Bank Financial analyst Zachary Evershed continues to rate Richelieu Hardware "sector perform." The Globe's David Leeder writes that Mr. Evershed tweaked his share target ahead by 50 cents to $38.50 (all figures Canadian) unless otherwise stated). Analysts on average target the shares at $38.75. Mr. Evershed believes Richelieu Hardware's acquisition of The Penrod Company's hardware division expands its presence in the United States and allows for cross-selling of Canadian products. Mr. Evershed says in a note: "We estimate total consideration at $70-million (U.S.) ($100-million), roughly one times P/S. Margins are expected to be broadly in line with Richelieu's, implying a transaction multiple above its typical four to six times EBITDA acquisition range. Integration is expected to be approached with a light touch, maintaining Penrod as somewhat of a standalone operation given its distinct customer base. While Penrod immediately satisfies the company's $100-million annual acquired sales target, it intends to continue pursuing M&A. We see pro forma net debt/EBITDA rising to 1.5 times from 1.3 times, leaving meaningful capacity for future acquisitions."