Street Calls of the Week
Investing.com - GFL Environmental (NYSE:GFL) received an Outperform rating as William Blair initiated coverage on the waste management company on Thursday. The stock, which has delivered a 15.24% return over the past year, currently trades near $46.46, with analysts maintaining a strong buy consensus and a high price target of $63.75.
William Blair highlighted GFL’s evolution from a private-equity-backed company that grew rapidly through acquisitions to one that has now reached "a point of optimal business mix and balance sheet leverage." According to InvestingPro data, this transformation has yielded impressive results, with revenue growing 19.12% over the last twelve months.
The firm noted this transition has allowed GFL to refocus its efforts and capital on its core solid waste business, positioning the company for continued growth.
William Blair expects GFL to "achieve predictable organic revenue and earnings growth" moving forward, citing structural advantages in the waste management sector.
These advantages were detailed in the firm’s white paper titled "One Man’s Trash Is an Investor’s Treasure," which outlines favorable industry dynamics supporting GFL’s growth trajectory.
In other recent news, GFL Environmental reported second-quarter 2025 earnings that exceeded expectations, with earnings per share reaching $0.26, surpassing the forecast of $0.12. The company’s revenue also outperformed predictions, reaching $1.68 billion compared to the anticipated $1.22 billion. Following these strong results, Truist Securities raised its price target for GFL Environmental to $60, maintaining a Buy rating due to favorable pricing and volume trends. Similarly, BMO Capital increased its price target to $53, citing GFL’s solid performance and its status as the only firm in its coverage to raise its 2025 EBITDA outlook. Barclays initiated coverage with an Overweight rating, forecasting significant growth potential for GFL, with adjusted EBITDA per share growth projected at 14% annually for 2026-2027. TD Cowen reiterated its Buy rating and a $64 price target, highlighting GFL’s merger and acquisition activity as a driver for future revenue growth. These developments underscore the positive sentiment among analysts regarding GFL Environmental’s growth prospects and financial performance.
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