BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Independent Stock Specific Research

VRS: EV/EBITDA Now 2.5X, Raising PT to $35

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

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Verso Corp. (VRS) reported second quarter results benefiting from a series of price increases implemented at the beginning of the year. Demand has not dissipated putting operating rates at well over 100 percent in the second quarter.</li></ul> <ul type="disc"><li>The current demand environment has enabled VRS to raise prices regularly this year that should provide a lift to earnings in subsequent quarters.</li></ul> <ul type="disc"><li>VRS reported second quarter revenue of $329 million and adjusted EBITDA of $52 million compared to our estimates of $282.5 million and $32.3 million, respectively.</li></ul> <ul type="disc"><li>Continued expectations of demand for coated paper should provide VRS a runway to generate a high level of free cash flow well into 2022, affirming our reasoning for the $20 bid being too low.</li></ul> <ul type="disc"><li>We are maintaining our price target of $30. VRS’s earnings power in the current climate should result in the shares trading higher once management addresses the $20 bid currently suppressing the stock price.</li></ul>


Verso Corp. (VRS) reported second quarter results benefiting from a series of price increases implemented at the beginning of the year. Demand has not dissipated putting operating rates at well over 100 percent in the second quarter. The current demand environment has enabled VRS to raise prices regularly this year that should provide a lift to earnings in subsequent quarters. VRS reported second quarter revenue of $329 million and adjusted EBITDA of $52 million compared to our estimates of $282.5 million and $32.3 million, respectively. Continued expectations of demand for coated paper should provide VRS a runway to generate a high level of free cash flow well into 2022, affirming our reasoning for the $20 bid being too low. We are maintaining our price target of $30. VRS’s earnings power in the current climate should result in the shares trading higher once management addresses the $20 bid currently suppressing the stock price.

Verso Corp

VRS: Paper Gold