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Melcor shares hold steady with RBC’s $14 target and sector perform rating By Investing.com

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On Thursday, RBC Capital maintained its Sector Perform rating and Cdn$14.00 price target for Melcor Developments (MRD:CN) (OTC: MODVF). The firm acknowledged the company’s positive performance at the beginning of 2024, which is notable given that the first quarter is usually slower. The firm’s outlook for Melcor’s land development segment is optimistic due to the sustained housing demand in Alberta.

The positivity towards the land development sector is balanced by a more conservative view of Melcor’s Commercial Properties segment. RBC Capital noted that while expectations for this area are subdued, they remain stable. The firm’s stance reflects a cautious approach in light of broader economic uncertainties.

RBC Capital’s commentary highlighted Melcor Developments’ encouraging start to the year. The analyst pointed out that the company is navigating the typically slow first quarter with strength. This performance is underpinned by the ongoing demand for housing in the Alberta region, which supports the land development business.

Despite the strong start, RBC Capital’s outlook is cautiously optimistic, considering the mixed performance across Melcor’s diverse portfolio. The Commercial Properties segment, in contrast to the land development business, is expected to experience steadier conditions without significant growth.

In summary, RBC Capital reiterated its Sector Perform rating and Cdn$14.00 price target for Melcor Developments, citing a robust beginning to 2024 for the company’s land development business amid a stable but muted performance in the commercial sector. The firm maintains its position on the stock, considering the current economic uncertainties.

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