BTIG maintains BrightView stock Buy rating, $22 target

Published 21/02/2025, 11:56
BTIG maintains BrightView stock Buy rating, $22 target

On Friday, BTIG analyst Carl Reichardt Jr. maintained a Buy rating on BrightView Holdings (NYSE:BV), with a consistent price target of $22.00. According to InvestingPro data, this target represents a 46% upside from the current price of $13.69, though the stock has experienced a challenging period with a 13% decline over the past six months. Following BrightView’s Analyst Day in New York, Reichardt highlighted several key takeaways from the event. The company set ambitious long-term goals, including reaching $4 billion in revenue, achieving 16% EBITDA margins, and realizing a 40% adjusted free cash flow (FCF) conversion. Current metrics from InvestingPro show the company generating $2.74 billion in revenue with an EBITDA of $310 million, indicating significant room for growth. The analyst expressed a positive surprise at the EBITDA margin target but had anticipated a slightly more robust revenue goal.

Improvements were noted in employee turnover and customer retention rates. BrightView reported a 20% reduction in frontline turnover over the past five quarters. Furthermore, the company’s top-performing branches have been successful in retaining 90% of customers and increasing contracts by 9%.

Investment into the business was another focal point, with plans to rejuvenate the company’s fleet and expand the sales force. BrightView expects to reduce the average age of its truck fleet to approximately six years and mowers to one year by 2025. Additionally, the company aims to increase its sales force by 50% in the near term.

The analyst day also shed light on BrightView’s strategic approach to growth, indicating a potential shift towards greenfield organic expansion, which may occur sooner than anticipated. Reichardt concluded that the insights gained from the event reaffirmed BTIG’s positive outlook on BrightView’s ongoing transformation, supporting the firm’s decision to continue recommending the stock as a buy. For investors seeking deeper insights, InvestingPro offers a comprehensive analysis of BrightView’s financial health, growth potential, and valuation metrics through its detailed Pro Research Report, available alongside 1,400+ other top stocks.

In other recent news, BTIG initiated coverage on BrightView Holdings with a Buy rating and set a price target of $22. This reflects a positive outlook for BrightView Holdings’ future financial performance. Meanwhile, BTIG assigned a Market Perform rating to Elanco Animal Health (NYSE:ELAN), establishing a price target of $14. Despite Elanco’s attractive valuation and upcoming product launches, such as Zenrelia for treating atopic dermatitis in animals, the firm maintains a neutral stance. The analyst’s cautious perspective on Elanco is influenced by proprietary survey work and discussions with key opinion leaders. These discussions have tempered expectations regarding the adoption of new products. Although Elanco is expected to launch several products, there is no forecasted significant acceleration in revenue growth at this time. The analyst’s decision to maintain a neutral rating reflects a conservative expectation for Elanco’s growth.

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