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.
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