Stifel resumes coverage on GFL Environmental stock with Buy rating

Investing.com - Stifel has resumed coverage on GFL Environmental (NYSE:GFL) with a Buy rating and a price target of C$86.00, according to a research note released Monday. The company, currently trading at $46.89, has shown strong momentum with an 18.75% return over the past year and appears slightly overvalued according to InvestingPro Fair Value metrics.

The firm cited GFL’s combination of self-help levers and acquisition opportunities as key factors behind the positive outlook, suggesting the company has the strongest position in these areas among its solid waste industry peers.

Stifel expects GFL to achieve total sales growth in the low-double-digit to low-teens range over the next several years, representing the fastest revenue growth among public competitors, with AEBITDA projected to compound in the mid-teens range through 2028.

The research note highlighted expectations for GFL’s AEBITDA to free cash flow conversion to improve from 36% in 2026 to mid-40% levels by 2028, eventually reaching high 40% conversion rates.

Stifel characterized GFL Environmental as a "higher risk/higher reward stock" suitable for investors who value the defensive characteristics of the waste management industry while appreciating what it called "a very offensive management team."

In other recent news, GFL Environmental has been the focus of several analyst updates and ratings. BMO Capital raised its price target for GFL Environmental to $53.00, citing solid second-quarter results and an increase in its 2025 EBITDA outlook. Truist Securities also increased its price target to $60.00, attributing the change to GFL’s improved guidance and favorable pricing and volume trends. Meanwhile, William Blair initiated coverage on GFL Environmental with an Outperform rating, noting the company’s optimal business mix and balance sheet leverage. Barclays also started coverage with an Overweight rating, highlighting GFL’s potential for above-peer growth and forecasting significant adjusted EBITDA per share growth for 2026-2027. TD Cowen reiterated its Buy rating, pointing to underappreciated growth potential and recent merger and acquisition activities as drivers for future revenue growth. These developments indicate a positive outlook from various analyst firms regarding GFL Environmental’s future performance.

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