Pason Systems (PSI – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst John Gibson CFA from BMO Capital maintained a Buy rating on the stock and has a C$18.00 price target.
John Gibson CFA has given his Buy rating due to a combination of factors including Pason Systems’ strong financial performance in Q4/24, particularly in its Solar/Energy Storage segment, which exceeded expectations. The company’s adjusted EBITDA of $42 million surpassed both the firm’s estimate and consensus, indicating robust operational efficiency despite a slight decline in EBITDA margins attributed to the integration of Intelligent Wellhead Systems (IWS).
Additionally, John Gibson CFA notes the company’s strategic capital allocation, with a $65 million budget for 2025 focused on growth in the IWS and mud analyzer segments. The potential for increased share buybacks as the year progresses further supports the positive outlook. The maintained target price of $18 reflects confidence in Pason Systems’ ability to outperform broader drilling rig counts and capitalize on long-term opportunities presented by IWS.