Zedcor Outperform Rating, C$5.00 Price Target, Confirmed at National Bank of Canada

01:42 PM EDT, 06/26/2025 (MT Newswires) -- National Bank of Canada maintained its outperform rating and C$5.00 price target on the shares of Zedcor (ZDCAF) .

The bank said it hosted investor meetings in New York with Zedcor's (ZDCAF) Chief Executive Officer, Todd Ziniuk, and Chief Financial Officer Amin Ladha.

The bank noted that the meetings reinforced its view of the multi-year growth opportunities ahead for the company, and added that it also identified "tangible and realistic growth initiatives to elevate the growth trajectory beyond the near term."

"As Zedcor (ZDCAF) scales, its competitive advantages and measured growth strategy reduce execution risk," stated the bank.

The bank also noted that during the meeting, it identified "incremental drivers and opportunities" to fuel growth beyond the near term. The bank had identified geographic expansion as the primary driver in its initiation report.

"The construction vertical is considered a low-hanging fruit as large construction companies have operations across the U.S., which Zedcor (ZDCAF) could leverage to penetrate into other areas," analyst John Shao said, adding that outside this vertical, retail represents the next biggest opportunity as the company already started building relationship with big retailers in the U.S.

The bank also pointed out that it sees multiple upselling opportunities with the addition of new features and services.

The bank further noted that Zedcor (ZDCAF) aims to establish 55 to 60 service centers (branches) across the U.S., "effectively covering most of its target customers within a 4- to 8-hour drive." The bank sees this national coverage network as the" biggest differentiator" for Zedcor (ZDCAF) and a major entry barriers for existing and new competitors.

Among other takeaways, the bank pointed out that as Zedcor (ZDCAF) ramps up its production volume, the bank sees a 5-10% reduction in production cost in the near term as the company benefits from the economy of scale.

Price: 4.10, Change: +0.26, Percent Change: +6.77

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