Citigroup Issues Pessimistic Forecast for GFL Environmental (NYSE:GFL) Stock Price

GFL Environmental (NYSE:GFL) had its price objective decreased by analysts at Citigroup from $55.00 to $51.00 in a research note issued to investors on Tuesday,BayStreet.CA reports. The firm currently has a “buy” rating on the stock. Citigroup’s target price would indicate a potential upside of 33.54% from the stock’s current price.

GFL has been the subject of a number of other reports. Scotiabank cut their price objective on shares of GFL Environmental from $57.00 to $56.00 and set a “sector outperform” rating for the company in a report on Thursday, February 12th. Royal Bank Of Canada increased their price objective on shares of GFL Environmental from $59.00 to $60.00 and gave the company an “outperform” rating in a report on Thursday, February 12th. Weiss Ratings lowered shares of GFL Environmental from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, February 9th. JPMorgan Chase & Co. lowered shares of GFL Environmental from a “neutral” rating to an “underweight” rating and cut their price objective for the company from $49.00 to $42.00 in a report on Tuesday. Finally, Barclays increased their price objective on shares of GFL Environmental from $62.00 to $63.00 and gave the company an “overweight” rating in a report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, GFL Environmental has a consensus rating of “Moderate Buy” and an average price target of $55.44.

GFL Environmental Stock Performance

NYSE GFL traded down $0.76 on Tuesday, reaching $38.19. 4,306,635 shares of the stock were exchanged, compared to its average volume of 1,723,392. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 1.05. GFL Environmental has a one year low of $36.96 and a one year high of $52.00. The company’s 50-day simple moving average is $42.85 and its two-hundred day simple moving average is $43.80. The firm has a market capitalization of $13.67 billion, a PE ratio of 5.62, a PEG ratio of 3.32 and a beta of 0.84.

GFL Environmental (NYSE:GFL) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.12. GFL Environmental had a net margin of 56.61% and a return on equity of 3.66%. The business had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.67 billion. During the same period last year, the firm posted ($0.58) EPS. The company’s revenue was up 7.3% on a year-over-year basis. Analysts expect that GFL Environmental will post 0.58 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. JPMorgan Chase & Co. grew its holdings in shares of GFL Environmental by 35.2% in the third quarter. JPMorgan Chase & Co. now owns 1,344,569 shares of the company’s stock valued at $63,706,000 after purchasing an additional 349,720 shares in the last quarter. Bank of Nova Scotia grew its holdings in shares of GFL Environmental by 17.1% in the third quarter. Bank of Nova Scotia now owns 357,808 shares of the company’s stock valued at $16,950,000 after purchasing an additional 52,121 shares in the last quarter. Generate Investment Management Ltd purchased a new position in shares of GFL Environmental in the third quarter valued at $7,891,000. Nordea Investment Management AB grew its holdings in shares of GFL Environmental by 40.8% in the fourth quarter. Nordea Investment Management AB now owns 6,673,954 shares of the company’s stock valued at $290,083,000 after purchasing an additional 1,932,442 shares in the last quarter. Finally, Citigroup Inc. grew its holdings in shares of GFL Environmental by 214.7% in the third quarter. Citigroup Inc. now owns 114,849 shares of the company’s stock valued at $5,444,000 after purchasing an additional 78,349 shares in the last quarter. 64.70% of the stock is owned by hedge funds and other institutional investors.

GFL Environmental News Roundup

Here are the key news stories impacting GFL Environmental this week:

• Positive Sentiment: Acquisition is strategically accretive and expands services: GFL agreed to buy SECURE Waste Infrastructure (enterprise value ~C$6.4B / ~$4.6B). Management says the deal is immediately accretive, will raise pro forma adjusted free cash flow per share by ~12–15%, increase adjusted EBITDA margin to ~31.6% and improve FCF conversion (40.5–42.5%). The purchase expands GFL’s Western Canada footprint and industrial/energy?linked services. PR Newswire: Acquisition Announcement
• Neutral Sentiment: Multiple outlets confirmed the transaction and valuation, so the market is pricing confirmed deal risk rather than rumor. Coverage includes Reuters/WSJ/Globe & Mail, which helps reduce headline uncertainty but leaves execution, timing and regulator questions open. WSJ: Deal Coverage
• Negative Sentiment: Deal funded mostly with stock (80% shares, 20% cash) — dilution concerns: the large share consideration implies significant new GFL share issuance, which typically pressures the acquirer’s stock and can outweigh accretion headlines in the short term. PR Newswire: Deal Terms (80% stock)
• Negative Sentiment: Investor reaction and price action: markets reacted to the size and stock?heavy structure — several reports show GFL shares slid on investor concerns about dilution, integration risk and near?term financial flexibility after another recent large deal. High trading volume accompanied the drop. QuiverQuant: Market Reaction
• Negative Sentiment: Analyst downgrade adds near?term selling pressure: JPMorgan lowered GFL from Neutral to Underweight and cut its price target to $42 from $49, signaling reduced conviction among some institutional analysts and likely contributing to negative sentiment. TickerReport/Benzinga: JPMorgan Downgrade
• Neutral Sentiment: Mixed analyst landscape: while some firms have higher targets and positive ratings (median targets have been well above current levels), the downgrade and deal?specific concerns create divergent analyst signals; investors will watch upcoming guidance and the investor call for clarity. Financial Post: Analyst Context

GFL Environmental Company Profile

GFL Environmental Inc is a leading North American provider of diversified environmental services, offering comprehensive solutions across solid waste management, liquid waste management, soil remediation and infrastructure services. The company’s core business activities include residential, commercial and industrial waste collection, recycling, composting and landfill management. In addition to traditional waste services, GFL provides specialized liquid waste hauling, treatment and disposal services as well as environmental consulting to support industrial and municipal clients in meeting regulatory and sustainability goals.

Founded in 2007 by entrepreneur Patrick Dovigi, GFL Environmental has pursued an aggressive growth strategy driven by strategic acquisitions and organic expansion.