Morgan Stanley analyst Toni Kaplan maintained a Hold rating on BrightView Holdings (BV – Research Report) today and set a price target of $16.00.
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Toni Kaplan’s rating is based on a combination of factors surrounding BrightView Holdings’ strategic plans and financial projections. The company has set ambitious targets for 2030, including achieving $4 billion in revenue, driven by a combination of customer retention, route density, cross-selling, and accretive M&A activities. While these initiatives show promise, the results are yet to materialize, which warrants a cautious approach.
Toni Kaplan notes that BrightView aims to improve its EBITDA margins to 16% through operational efficiencies and strategic investments. Additionally, the company plans to increase its free cash flow conversion significantly by the end of the decade. Although these plans indicate a positive direction, the current financial performance and the execution risks associated with these goals lead to the Hold rating, as the market awaits concrete evidence of sustained growth and profitability improvements.