BMO Capital analyst Tom Mackinnon maintained a Buy rating on Element Fleet Management (ELEEF – Research Report) yesterday and set a price target of C$33.00.
Tom Mackinnon has given his Buy rating due to a combination of factors that highlight Element Fleet Management’s steady growth potential and strategic positioning. The company has demonstrated consistent growth, with a reaffirmed guidance for 2025 that aligns with previous expectations, indicating confidence in its ability to achieve high-single to low-double-digit increases in adjusted EPS and free cash flow per share.
Element Fleet Management’s robust servicing revenue, which saw a significant year-over-year increase, and its strategic investments, including the acquisition of AutoFleet, are key components of its growth strategy. Additionally, the company’s new arrangement with Blackstone is expected to diversify its funding sources and reduce leverage, contributing to a capital lighter model. These factors, combined with operational leverage and share buybacks, are expected to drive more than 10% growth in operating EPS and adjusted free cash flow, supporting the Buy rating.
In another report released yesterday, National Bank also maintained a Buy rating on the stock with a C$40.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ELEEF in relation to earlier this year.