Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - BMO Capital has lowered its price target on FirstService Corp (NASDAQ:FSV), a $7.58 billion real estate management company with a 10-year dividend growth streak, to $209.00 from $225.00 while maintaining an Outperform rating.
The price target reduction follows FirstService’s third-quarter 2025 results, which were in-line with expectations but triggered a 10% stock decline due to organic growth concerns at FirstService Brands (FSB). According to InvestingPro data, the stock’s RSI indicates oversold conditions, while the company maintains strong revenue growth of 16.68% over the last twelve months.
According to BMO Capital, adjusted EBITDA exceeded forecasts in FirstService Residential (FSR) but fell below expectations in FirstService Brands, with macroeconomic uncertainty affecting the Roofing segment.
The firm noted that Restoration growth was negatively impacted by difficult year-over-year comparisons and lower storm activity, with these factors expected to continue weighing on fourth-quarter 2025 performance.
Despite these challenges, BMO Capital maintains that FirstService’s underlying demand drivers remain intact, characterizing the current headwinds as temporary and viewing the recent stock pullback as "a particularly attractive buying opportunity." InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 12 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, FirstService Corp reported its third-quarter earnings for 2025, revealing mixed results. The company achieved an adjusted earnings per share (EPS) of $1.76, which met analysts’ expectations. However, its revenue of $1.45 billion fell short of projections by 1.36%, indicating some challenges in meeting market demands. Additionally, TD Cowen upgraded FirstService’s stock rating from Hold to Buy, citing a significant 20% decline in the company’s share price since early September as a compelling valuation opportunity. The firm slightly adjusted its price target to $213.00 from $214.00. These developments underscore the complexities FirstService faces in balancing earnings performance with revenue growth. Investors are closely watching how the company navigates these challenges in the current market environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.