Vancouver, British Columbia--(Newsfile Corp. - July 25, 2013) - PI Financial Corp. has initiated coverage on Macro Enterprises (TSXV: MCR). Analyst Jason Zandberg gives the company a buy rating, and a12-month target of $7.00, a premium of 80% to the $3.88 price the day the report was issued.
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The company specializes in the construction and integrity of pipelines and oil and gas facilities. Based in Fort St. John, British Columbia, the company provides its services throughout Western Canada from Manitoba to BC.
Macro's financial results have been very strong over the past four years and have accelerated over the last 18 months. Revenue has grown from $48 million in 2009 to $148 million in 2012, substantially through organic efforts. The company's clients include, Enbridge, Talisman, TransCanada, Cenovus, Nexen, Spectra, AltaGas and Pembina.
British Columbia's liquid natural gas development could result in several multi-million dollar contracts for pipeline and facilities construction business for Macro, once final investment decisions are announced. Pipelines connecting Western Canada's gas producing regions to the coast, for ultimate delivery to Asia, will encourage further development of natural gas resources which includes associated well-site water lines, natural gas flowlines and processing facilities.
PI Financial expects revenue to grow 37% for the full year of 2013, and 23% for 2014. A significant growth constraint for this market is access to equipment and labour and Macro is in an enviable position with respect to both these variables.
Analyst Jason Zandberg stated, "Given Macro's revenue and earnings growth profile we believe Macro shares are still significantly undervalued. Our target and financial estimates are contingent on a final investment decision, on one or more LNG plants, by December 2013 and spending to begin by late 2014."
The company currently trades at $4.16, well below the $7.00 target price, and with 29.4 million shares outstanding, the company is capitalized at $122 million.
For more information, please visit the company's website www.macroenterprises.ca or contact Frank Miles, President & CEO at 250-785-0033 or email frank@macroindustries.ca.
For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.
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