Opinions
Jordan Zinberg
Richards Packaging Income Fund
RPI.UN-T
BUY ON WEAKNESS
Feb 03, 2023
Stock price when the opinion was issued
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RPI.UN is the third largest packaging company in North America. Although segments of their business have been challenged during the pandemic, the company has been prudently reducing debt through working capital leaving cash reserves in a good position. Its dividend is maintained by a payout ratio under 50% of free cash flow. We recommend placing a stop-loss at $29.50, looking to achieve $46.00 -- upside potential of 34%. Yield 3.8%
(Analysts’ price target is $46.50)We reiterate RPI.UN, the third largest packaging company in North America, as a TOP PICK. Management has dealt with industry challenges while continuing to grow cash reserves and retiring debt. Its dividend is maintained by a payout ratio under 50% of free cash flow. We recommend trailing up the stop (from $29.50) to $31.00, looking to achieve $46.00 -- upside potential of 33%. Yield 3.7%
(Analysts’ price target is $46.50)Our PAST TOP PICK with RPI.UN has triggered its stop at $31. To remain disciplined, we recommend covering the position at this time. When combined with our previous buy recommendation, this will result in a net investment loss of 10%.
Great steady company that most people are not aware of.
All types of packaging in healthcare and consumer business.
Very low profile of CEO.
Valuation recently very high.
Waiting for shares to fall before buying.