William Blair analyst Tim Mulrooney has reiterated their bullish stance on BV stock, giving a Buy rating yesterday.
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Tim Mulrooney has given his Buy rating due to a combination of factors that highlight BrightView Holdings’ promising growth trajectory and operational improvements. The company’s management has expressed confidence in the land maintenance business turning positive, driven by enhanced customer retention and development conversion rates. This optimism is supported by a streamlined branch structure and improved employee management.
Customer retention has shown significant progress, with rates currently between 80%-85% and a goal to exceed 90% across the branch network. Additionally, the company has made strides in development conversion, increasing its capture rate from less than 10% to 20%, with a long-term target of 70%. Employee retention has also improved, reducing turnover by 20% over the past six quarters, which has decreased hiring needs and allowed for reinvestment in frontline employees. These factors collectively contribute to the positive outlook for BrightView Holdings, justifying the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $22.00 price target.