In a report released yesterday, John Gibson CFA from BMO Capital maintained a Hold rating on Badger Infrastructure Solutions (BADFF – Research Report), with a price target of C$45.00.
John Gibson CFA has given his Hold rating due to a combination of factors influencing Badger Infrastructure Solutions. The company reported a robust quarter with strong performance in its U.S. segment, which contributed to a 28% year-over-year increase in adjusted EBITDA, surpassing both the firm’s and market expectations. Despite this positive performance, revenue in Canada saw a decline, and there was a slight decrease in revenue per truck in the U.S., indicating some operational challenges.
Additionally, while the company has introduced a promising 2025 fleet growth plan, targeting a net increase of 4-7%, there remains a level of macroeconomic uncertainty that tempers the immediate outlook. Although the long-term prospects appear constructive, the current market conditions warrant a cautious approach. Therefore, the Hold rating reflects a balanced view of the company’s potential for growth against the backdrop of these uncertainties.
BADFF’s price has also changed slightly for the past six months – from $26.530 to $27.270, which is a 2.79% increase.