On Wednesday, NFI Group Inc. (NFI:CN) received an upgrade from a CIBC (TSX:CM) analyst from Neutral to Outperformer. Alongside the improved rating, the analyst also raised the price target on the company's shares to Cdn$21.00, up from the previous Cdn$18.50.
The upgrade reflects the analyst's view that the recent decline in NFI Group's share price has sufficiently factored in concerns regarding near-term supply chain disruptions. The analyst believes that the company's current share price level presents an opportunity for investors, given the potential for future growth.
NFI Group, known for its manufacturing of buses and motor coaches, is seen to benefit from a strong demand environment. This optimistic outlook is supported by the company's substantial multi-year backlog, which is expected to underpin its performance going forward.
The raised price target to Cdn$21.00 from Cdn$18.50 is indicative of the analyst's confidence in NFI Group's ability to overcome current market challenges. The analyst emphasized that the new target is a direct result of the recent share price weakness, now considered to be an overreaction to the supply chain issues.
In summary, the CIBC analyst's commentary highlighted the robust demand for NFI Group's offerings and the company's extensive backlog. The upgrade to Outperformer status, along with a higher price target, suggests a positive outlook for NFI Group's shares in the market.
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