Intertape Polymer Group (ITP.TO) Buy, Sell or…

Home

Daily Stock Opinions and Ratings

Intertape Polymer Group (ITP.TO)

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

40.48

-0.00 (0.00%)

as of Jun 30, 2022, 8:00:00 pm Market Open.

177 watching

TOP PICK

Has a 900M market cap. They make pressure sensitive and water activated sealing tape used in e-commerce shipping. They have 11% free cashflow yield that they would use to pay down debt. Earnings are expected to grow well through 2021. Technical analysis notes that it has reversed a 3 year down trend. Potential 30-34% upside. An e-commerce play. (Analysts’ price target is $18.19)

HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They reported a good second quarter, but growth has been slow. There are risks in their balance sheet and to the broader economic risk. However, it has a solid cash flow and is priced well. Unlock Premium - Try 5i Free

PAST TOP PICK

(A Top Pick Apr 01/19, Down 7%) Still owns it, though he owns less than before. He owns it for income accounts. It raised its dividends and it's now at 5%. It generates good free cashflow. It looked like they were having organic growth but it fell through. They are expecting big things but management has not yet delivered in the past few years. He wouldn't sell it though and believes it is worth over $20.

DON'T BUY

They have a big presence in the US (80% of sales.) It is a pretty competitive space and he does not like it. He was exposed with another player (CCL). He moved on in the fourth quarter because their growth had stalled. It is stuck and range bound and unless earnings grow there is little reason to think share price will.

WEAK BUY

They sell tape used in e-commerce packages. Merely an okay business with okay managers. But it generates a lot of free cash flow, and the valuation is attractive. Own this for income. In a few years, the balance sheet will be terrific.

BUY

He likes it. It has a decent dividend. As online shopping grows, the stock will do just fine.

DON'T BUY

It is a well managed but low marking business. They are trying to diversify. He has looked at it many times but still prefers CCL.B-T.

HOLD

They have not delivered on organic revenue growth. It's on his hold list for now. Management has said they will get back to organic revenue growth. The thesis has yet to work.

BUY

CCL vs. Intertape Polymer $54.97 is his model price for CCL; the stock is trading near this price. He hasn't looked at Intertape in years; $19.17 is his model price. He likes both. Don't sell one to buy the other. Doesn't prefer either.

BUY

Frustrated. They've done the right things: adding new lines to their plants and investing well. It's not getting the love it deserves. Resin prices are pressuring this. E-commerce growth keeps going so this should improve their cash flow. ITP (tape) doesn't compete with CCL (labels).

BUY

Their guidance says profits will increase by 50% in 3-5 years through acquisition and improving operations. They have bought a lot of companies in recent years, so the balance sheet needs work. E-commerce is a strong tailwind which is why he likes it. They are building a global powerhouse and trade at a good valuation. They've stopped raising the dividend so they can make acquisitions.

TOP PICK

It's a play on a big tailwind to e-commerce. ITP's customers are all the e-commerce giants. ITP has met its guidance for 4 years and is guiding to have enormous growth by 2022. But the market is ignoring this company. It pays a fabulous dividend. Free cash flow will expand. People won't spend less online. (Analysts’ price target is $22.93)

PAST TOP PICK

(A Top Pick Aug 09/18, Up 2%) It's a sma/mid-cap name so a little volatile. He will hold this to $22-26. It pays a 4% dividend. They missed their growth targets in the last few quarters, but have recovered, so the price has moved up accordingly. In a good market, this outperforms, but in a weak one it underperforms, because it's levered a little more.

BUY ON WEAKNESS

A pretty stable business and the packaging business looks good. He is watching it, but has not yet pulled the trigger. He is looking to buy it on a pullback.

DON'T BUY

He prefers CCL, which has 5 times the size than ITP with better margins. ITP is a small player in a space domianted by giant, 3M. ITP has a lot of commodity exposure and cost pressure that is difficult to pass to end clients who are big multinationals. That said it has impressively improved margins over the past decade. But their commodity expoure and heavy leverage are concerns if we see an economic downturn. You could see a bounce after earnings next week though, but long-term look elsewhere in this sector.

Showing 16 to 30 of 149 entries

Most Recent Experts

Brian Madden

First Avenue Investment Counsel

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

Darren Sissons

Campbell Lee & Ross

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Joe Terranova

Virtus Investment Partners

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Intertape Polymer Group (ITP.TO)