In a report released yesterday, Stephanie Moore from Jefferies maintained a Buy rating on GFL Environmental (GFL – Research Report), with a price target of $51.00.
Stephanie Moore’s rating is based on a comprehensive assessment of GFL Environmental’s financial performance and forward-looking guidance. The company’s first-quarter results surpassed both Jefferies’ estimates and the consensus on key financial metrics, such as revenue and EBITDA, with margins also exceeding expectations. Notably, management’s confidence is evidenced by the raised EBITDA margin expansion guidance for 2024, suggesting an improving operational efficiency. Moore sees GFL as favorably positioned to potentially outdo the already positive guidance due to various operational advantages that have yet to be factored into market expectations.
Additionally, Moore believes that the market has not fully appreciated GFL’s strong pricing power and margin expansion potential. The company’s first-quarter pricing outperformed forecasts, which may signal a trend toward the higher end of the guidance for the year. Despite some concerns over high net leverage, Moore is optimistic that management will achieve its leverage targets by the end of 2024, bolstered by significant deleveraging expected in the second half of the year. The combination of a solid financial start to the year, raised EBITDA guidance, and the potential for further upward revisions supports Moore’s Buy rating for GFL Environmental.
GFL’s price has also changed moderately for the past six months – from $28.280 to $33.440, which is a 18.25% increase.
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GFL Environmental (GFL) Company Description:
GFL Environmental Holdings Inc is an environmental services company. Its offerings include non-hazardous solid waste management, infrastructure, soil remediation, and liquid waste management services. Its solid waste management business line includes the collection, transportation, transfer, recycling and disposal of non-hazardous solid waste. Its infrastructure and soil remediation business line provide remediation of contaminated soils as well as complementary services, including civil, demolition, excavation and shoring services.
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