FirstService price target raised to $187 from $178 at RBC Capital

RBC Capital analyst Tom Callaghan raised the firm’s price target on FirstService to $187 from $178 and keeps an Outperform rating on the shares. The acquisition of a significant controlling stake in Roofing Corp of America for $413M is strategically sound and checks a number of boxes which the firm see as “core tenants” of the FirstService investment story, the analyst tells investors in a research note. The purchase adds a new roofing vertical with significant growth potential to the Brands division and also augments the company’s revenue base, the firm added.