Raymond James analyst Michael Barth, CFA has maintained their bullish stance on EFX stock, giving a Buy rating yesterday.
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Michael Barth, CFA has given his Buy rating due to a combination of factors that highlight Enerflex’s strong financial performance and strategic positioning. The company reported an all-time high adjusted EBITDA of US$145 million, significantly surpassing both the firm’s and market expectations. This impressive performance is attributed to robust results in both the Energy Services and Energy Infrastructure segments, coupled with a notable reduction in core general and administrative expenses.
Furthermore, Enerflex’s bookings in the Energy Services segment reached US$339 million, exceeding expectations and maintaining a healthy backlog of approximately US$1.1 billion. The free cash flow was also stronger than anticipated, and the company’s net debt ratio improved to 1.2x, indicating a solid balance sheet. Additionally, Enerflex increased its quarterly dividend by 13%, reflecting confidence in its financial health and future prospects. These factors collectively underpin the positive outlook and justify the Buy rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$19.50 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EFX in relation to earlier this year.