Analyst Devin Dodge of BMO Capital maintained a Buy rating on GFL Environmental (GFL – Research Report), with a price target of $42.00.
Devin Dodge has given his Buy rating due to a combination of factors including the robust fundamentals of the waste industry, the potential for GFL Environmental to outperform its peers in earnings and free cash flow growth, and the company’s strong growth trajectory. Despite concerns about GFL’s high leverage, Dodge believes there is a clear path to an investment-grade rating within the forecast period. Additionally, the stock’s current valuation presents an attractive entry point as it trades at a notable discount compared to its peers, which suggests a solid opportunity for investors.
Furthermore, Dodge’s outlook on GFL’s financial performance is optimistic, citing the company’s conservative EBITDA guidance and the likelihood of outperforming their forecasts. The expectation of a higher price-cost spread, rising commodity values, and new projects all contribute to the potential upside. While aggressive capital deployment and acquisitions may slow down deleveraging, management’s commitment to reducing financial leverage is expected to improve the company’s credit standing over time. Dodge’s confidence is further underpinned by raising the target price for GFL, reflecting both an increase in estimates and a higher valuation multiple for the solid waste division.
In another report released yesterday, Stifel Nicolaus also reiterated a Buy rating on the stock with a C$60.00 price target.
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Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GFL in relation to earlier this year.
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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.
Read More on GFL:
- GFL sees FY24 revenue $8.000B, consensus may not compare with consensus $5.92B
- GFL Environmental reports Q4 EPS (21c) may not compare with consensus 16c
- GFL Environmental Reports Fourth Quarter and Full Year 2023 Results; Provides Full Year 2024 Guidance
- GFL Environmental initiated with a Buy at UBS
- GFL Environmental downgraded to Neutral from Buy at BofA
