Keith Rosenbloom, Founder and Managing Partner of Cruiser Capital (left)
By Karen Roman
Shares of two companies discussed at the 2023 Palm Beach CorpGov Forum by Keith Rosenbloom, Founder and Managing Partner of Cruiser Capital, are trending upward by using what he calls “self-applied activism.”
Aerospace company FTAI Aviation Ltd. (Nasdaq: FTAI) has climbed 118% since November to $85. Meanwhile, building materials company CRH Plc (NYSE: CRH) has risen 40% to $80 during that time.
Mr. Rosenbloom, while occasionally resorting to traditional activism, has argued that self-help actions by shareholder-focused boards and management teams can deliver value.
FTAI said today that the company entered into a transaction to terminate the company’s external management and advisory agreement with Fortress Investment Group effective May 28, and that FTAI will be an internally managed company going forward.
“We believe FTAI shares should react positively to the announcement and that the removal of the internalization should result in a higher valuation multiple and as a result, we are increasing our valuation multiple to 12x (from 11x),” wrote analyst Giuliano Bologna of Compass Point Research & Trading. “We are reiterating our Buy rating and increasing our price target to $96 (from $88) based on 12x our FY26E EBITDA of $1,024M.”
Meanwhile, CRH might benefit from positive demand in the infrastructure, residential and nonresidential sectors and lift revenue 4-7% annually in 2023-25, while Ebitda could expand 5-8%, according to Bloomberg Intelligence.
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