National Bank Raises TerraVest Industries' Target Following EnTrans Acquisition; Shares Up 10%

12:27 PM EDT, 03/18/2025 (MT Newswires) -- National Bank of Canada raised its price target on the shares of TerraVest Industries ( TRRVF ) to $134.00 from $126.00 while maintaining a sector-perform rating after the company closed the US$546-million acquisition of EnTrans International.

The bank believes that the integration opportunity set is both broad and substantial, "with management having room to run their usual procurement and network utilization playbook, as well as to attack further growth opportunities."

Analyst Zachary Evershed sees synergies stemming from significant added volume, production flexing, and penetration into adjacent end-markets and existing dealer and customer channels.

The bank estimates that the acquisition will add $765 million in annualized sales, growing organically in existing verticals in the low-single digits range.

The bank also added that it does not "explicitly" model the impact of 25% tariffs on cross-border goods or on international steel as "TerraVest's manufacturing footprint (further aided by the newly acquired EnTrans), the product delivery radius constraint imposed by unit economics, and management's experience sourcing domestic steel during the last bout of tariffs will render the effect of tariffs largely negligible," in a note dated Mar. 17.

Shares of the company were last seen up $13.34 to $144.38 on the Toronto Stock Exchange.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 143.82, Change: +12.78, Percent Change: +9.75

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.