GFL Environmental (GFL) has received a new Buy rating, initiated by William Blair analyst, Trevor Romeo.
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Trevor Romeo’s rating is based on GFL Environmental’s strategic positioning and growth prospects. The company has successfully transitioned from rapid acquisition growth to optimizing its business mix and balance sheet, allowing it to concentrate on its core solid waste operations. This focus is expected to drive consistent organic revenue and earnings growth, supported by GFL’s advantageous market position.
Additionally, GFL’s robust pipeline of mergers and acquisitions within its existing territories is projected to significantly enhance EBITDA growth without the risks associated with expanding into new markets. The company is also benefiting from Canada’s EPR rollout, which is boosting its recycling business, and is expanding its renewable natural gas assets, further contributing to financial growth. Operational efficiencies are also being improved, which could lead to substantial margin expansion, reinforcing the company’s strong financial outlook.
In another report released on September 17, Barclays also initiated coverage with a Buy rating on the stock with a $62.00 price target.
Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GFL in relation to earlier this year.