On Thursday, Goldman Sachs maintained its Buy rating on Brink’s Company (NYSE:BCO) shares, with a steady price target of $111.00. The firm’s analysts adjusted their near-to-medium term estimates for the security and logistics company, citing the impact of a stronger US Dollar and changing market dynamics in Argentina.
According to InvestingPro data, the stock appears undervalued, with a market cap of $4 billion and strong financial health metrics. The company has maintained dividend payments for 36 consecutive years, demonstrating consistent shareholder returns.
Brink’s, which generates around 70% of its revenue outside of the United States, is now expected to face a 6% headwind to its reported revenue growth for the year 2025 due to the appreciating US Dollar. This is an increase from the previously anticipated 3.5% headwind. The firm also revised its forecast for the company’s total organic revenue growth in 2025 to 6%, a decrease from the earlier projection of 9%.
This adjustment reflects an anticipated slowdown in growth in Latin America, particularly as inflation in Argentina continues to subside, leading to lower organic revenue growth contributions from the region. InvestingPro analysis shows the company maintains a healthy current ratio of 1.57, with liquid assets exceeding short-term obligations, suggesting strong financial stability despite these headwinds.
Despite these adjustments, Goldman Sachs remains optimistic about Brink’s execution of its business strategy. The company is focused on expanding its high-growth, high-margin Digital Retail Solutions and ATM Managed Services, which currently account for 23% of its revenue and are experiencing a 26% organic growth rate. This growth is supported by strong demand trends and a robust pipeline. Additionally, Brink’s legacy Cash & Valuables business is also showing healthy price and volume growth, according to the firm’s analysis.
Goldman Sachs’ reiteration of the Buy rating comes with the expectation that Brink’s will continue to effectively navigate through the currency headwinds and market changes while capitalizing on the growth opportunities in its digital and ATM services. The $111.00 price target remains unchanged, signaling the firm’s confidence in the company’s long-term prospects.
In other recent news, Brink’s Company released their third quarter 2024 results, emphasizing the use of non-GAAP financial measures. The company believes these non-GAAP metrics offer a clearer view of their operational performance. Detailed results and related information are available on Brink’s investor relations website.
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