Heather Balsky, an analyst from Bank of America Securities, reiterated the Buy rating on APi Group (APG – Research Report). The associated price target is $45.00.
Heather Balsky’s rating is based on APi Group’s robust financial performance and a strong strategic outlook. In the first quarter, APi Group surpassed consensus expectations for adjusted EBITDA and earnings per share, demonstrating its ability to achieve growth despite foreign exchange headwinds and other market challenges. The company successfully maintained its guidance for 2024, not including the potential positive impacts from its recent acquisition and divestiture activities. Balsky emphasizes the company’s consistent execution of its value creation framework, which is expected to lead to multiple expansions, justifying the Buy rating and a price objective of $45.00.
APi Group’s first-quarter results showed resilience with higher sales and EBITDA margins, outperforming market estimates. The report highlights the company’s strategic shift toward higher-margin projects and more selective customer engagement, particularly in its international HVAC and specialty services sectors. This approach is part of a broader trend toward improved financials, as evidenced by the expansion in adjusted EBITDA margin and the anticipation of organic sales growth in the second half of the year. Balsky points to these factors, along with the accretive impact of strategic mergers and acquisitions, as instrumental in APi Group’s path toward exceeding its EBITDA margin targets by 2025, further supporting the Buy recommendation.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $44.00 price target.
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APi Group (APG) Company Description:
APi Group Corp operates in three areas including Industrial Solutions, Safety Solutions, and Specialty Services. Its Industrial solutions segment provides a variety of specialty contracting services and solutions to the energy industry focused on transmission and distribution in the U.S. and Canada. The Safety Solutions segment provides fire protection solutions, HVAC and specialty systems, which include the design, installation, inspection, and service of these integrated building systems in North America. Its Specialty Services segment provides diversified infrastructure and specialty contractor solutions, focusing on infrastructure services and specialized industrial plant solutions, including maintenance and repair of water, sewer and telecom infrastructure.
