Zedcor Outperform Rating, $5.50 Price Target, Confirmed at National Bank of Canada

01:48 PM EDT, 09/23/2025 (MT Newswires) -- National Bank of Canada on Monday maintained an outperform rating and $5.50 price target on the shares of Zedcor (ZDCAF) .

The bank provided takeaways from a visit to Zedcor's (ZDCAF) Denver branch.

"The quick turnaround of inventory plus the limited return at this branch are accurately reflected in Zedcor's (ZDCAF) growth (84% from the most recent quarter) and a high asset utilization rate of over 90%," said analyst John Shao.

National Bank also said it got a "better sense" of what the barrier to entry is, which it said is the "local touch."

"When the company employs a group of highly motivated individuals who diligently search for new market opportunities and invest their time to build relationships with individual decision makers, we believe this diligence and local touch are the biggest entry barrier, along with Zedcor's (ZDCAF) high standard of service," said Shao.

The bank also pointed out that Denver's success "can be replicated" and thus Zedcor's (ZDCAF) geographic expansion is "scalable."

The bank said that there is limited capex involved in establishing a local branch and estimates a single branch could cover a radius of up to 520 miles.

"As a result, we believe Zedcor's (ZDCAF) geographic expansion to cover the entire U.S. is achievable," added Shao.

Price: 4.54, Change: +0.11, Percent Change: +2.48

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