BMO maintains Outperform rating on Element Fleet stock with no target change

EditorTanya Mishra
Published 10-09-2024, 07:06 pm

BMO Capital Markets has sustained its positive stance on Element Fleet Management (EFN: CN) (OTC: ELEEF), maintaining an Outperform rating and a price target of Cdn$32.00.


The firm's analysis highlighted Element Fleet's robust performance within the S&P/TSX Industrials sector, emphasizing strong key performance indicators (KPIs) such as revenue growth and free cash flow (FCF) yield.


In the year since Element Fleet Management transitioned from the S&P/TSX Financials sector to the S&P/TSX Industrials sector, the company has demonstrated significant financial performance compared to its peers.


BMO Capital's review of Element Fleet against seventeen other large-cap names in the S&P/TSX Industrial sector revealed that the company not only ranks highly in terms of price performance but also shows leading revenue and pre-tax adjusted income growth.


Element Fleet's financial metrics, particularly its free cash flow yield, which stands at a top-tier 7.7%, suggest that the company is still undervalued despite its strong growth figures.


This metric is considered attractive when assessing the company's valuation and potential investor returns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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