Stephen Macleod, an analyst from BMO Capital, reiterated the Buy rating on FirstService (FSV – Research Report). The associated price target is $217.00.
Stephen Macleod has given his Buy rating due to a combination of factors that highlight FirstService’s strong financial performance and strategic positioning. The company reported a modest beat in its Q1/25 earnings, surpassing expectations with an adjusted EBITDA of $103.3 million, which represents a 24% year-over-year increase. This performance, along with an adjusted EPS that exceeded consensus estimates, underscores the company’s resilience and ability to maintain growth despite macroeconomic challenges.
FirstService’s diversified revenue streams and recurring revenue model, which accounts for approximately 75-80% of its income, provide a stable foundation against potential economic downturns. The company’s long-term potential for compounding growth, driven by strategic acquisitions and organic growth, supports its premium valuation. Additionally, FirstService’s strong liquidity position, with over $800 million available, and a solid balance sheet further reinforce its capability to sustain growth and navigate market uncertainties effectively.
Based on the recent corporate insider activity of 32 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 FSV in relation to earlier this year.