NFI Group Inc (NFI – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst John Gibson CFA from BMO Capital maintained a Hold rating on the stock and has a C$13.00 price target.
John Gibson CFA’s rating is based on a combination of factors impacting NFI Group Inc. The company’s Q4/24 results showed some positive signs, with adjusted EBITDA slightly surpassing expectations. However, ongoing issues with seating supply and a reduction in the 2025 EBITDA guidance have raised concerns. The company anticipates improvements in the latter half of 2025, but elevated leverage and potential tariff challenges remain significant risks.
Despite a strong backlog and some positive developments in the aftermarket segment, the near-term uncertainties surrounding supplier issues and tariff impacts have led to a cautious outlook. The valuation of NFI Group Inc. appears attractive compared to historical levels, but these immediate challenges justify a Hold rating. Consequently, the target price has been adjusted to $13, reflecting these considerations.
According to TipRanks, Gibson CFA is a 5-star analyst with an average return of 19.0% and a 53.46% success rate. Gibson CFA covers the Energy sector, focusing on stocks such as CES Energy Solutions, Trican Well Service, and Precision Drilling.