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Investing.com - Goldman Sachs raised its price target on BrightView Holdings (NYSE:BV) to $13.40 from $12.90 while maintaining a Sell rating on the landscape maintenance company. Currently trading at $15.66, InvestingPro data shows the stock has gained over 23% in the past year, though analysts’ targets range from $13.50 to $24.00.
The firm noted that BrightView recently lowered its fiscal 2025 revenue outlook, citing timing-related delays and reduced customer discretionary spending due to macroeconomic uncertainty. BrightView cut its core landscape maintenance revenue growth forecast from 1-3% growth to a decline of 2% to flat performance. According to InvestingPro data, the company’s revenue has already declined by 2.85% over the last twelve months, with four analysts recently revising their earnings expectations downward.
The company also significantly reduced its development revenue growth guidance from 3-6% growth to a range of down 2% to flat. Goldman Sachs attributed this to project delays caused by contractors facing labor shortages related to immigration reform and material procurement difficulties due to tariff headwinds.
Despite the revenue outlook reduction, BrightView maintained its EBITDA guidance at the midpoint, resulting in higher projected margins. The improved margin outlook stems from customer de-scoping of work and efficiencies from the company’s One BrightView initiative.
Goldman Sachs lowered its revenue forecasts for BrightView by 340 basis points for fiscal 2025 while raising EBITDA margin estimates by 60 basis points for the same period. The firm continues to maintain its Sell rating, citing BrightView’s operation in a competitive industry with limited pricing power and high employee and customer turnover. InvestingPro’s comprehensive analysis indicates a Fair overall financial health score, with particularly strong momentum metrics. Subscribers can access over 30 additional financial metrics and insights in the Pro Research Report.
In other recent news, BrightView Holdings has adjusted its fiscal year 2025 revenue projections due to macroeconomic pressures, now anticipating total revenue between $2.68 billion and $2.73 billion, down from the previous forecast of $2.75 billion to $2.84 billion. Despite this reduction, the company maintained its adjusted EBITDA guidance at $348 million to $362 million and increased its adjusted free cash flow outlook to $60 million to $75 million. BrightView cited timing delays in development projects and reduced discretionary spending as key factors impacting its performance. The company expects maintenance land revenue to range from approximately -2% to flat, a revision from the prior forecast of 1% to 3% growth. Additionally, development revenue growth has been adjusted from 3% to 6% to approximately -2% to flat. In a separate development, BrightView finalized an upsized secondary offering of 11.6 million shares of common stock by an affiliate of KKR & Co. Inc., with no proceeds going to BrightView itself. William Blair has reiterated an Outperform rating on BrightView despite delays in growth projections, expressing confidence in management’s ability to achieve positive land maintenance organic growth eventually. The company plans to release its third quarter fiscal 2025 financial results on August 6, 2025.
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