The bank gave them a strong buy rating and C$21 12-month price target, saying that this business model could turn into a “rushing river.” They say that their bullishness comes from a number of factors.
As explained above, Carbon Streaming purchases up-front an annual stream of carbon credits from carbon offset projects, which will eventually be sold to companies who need it in other sectors.
With the large and sudden influx of demand, Raymond James says the credit prices have gone up 150% on average over the last five months.
They then assume a 5% annual appreciation in carbon credit price, which puts Carbon Streaming at $148 million EBITDA by 2030.
The last factor is the company boasts a number of high-quality management personnel, writing, “we believe CSC’s management team is abundantly well qualified to apply the royalty model in the carbon credit industry.” CEO Justin Cochrane has over 20 years in the royalty/streaming industry.
The author has been compensated to cover Carbon Streaming Corp on The Deep Dive, with The Deep Dive having full editorial control.
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