FirstService’s Strong Q2 Performance and Robust Growth Potential Justify Buy Rating

Stephen Macleod, an analyst from BMO Capital, reiterated the Buy rating on FirstService. The associated price target was raised to $225.00.

Stephen Macleod has given his Buy rating due to a combination of factors including FirstService’s strong financial performance in Q2/25, where the company exceeded expectations in adjusted EBITDA and EPS. The solid margins in both of its segments were a significant contributor to this positive performance, which also led to a notable increase in the stock price. Despite some macroeconomic challenges affecting certain areas like Roofing and Home Services, the underlying growth drivers for FirstService remain robust.
Additionally, Macleod highlights FirstService’s long-term potential for compounding growth, supported by its stable, recurring revenue model which accounts for approximately 80% of its revenue. The company’s strong liquidity position and solid balance sheet further reinforce its ability to navigate potential macroeconomic headwinds. These factors, combined with an attractive valuation, underpin Macleod’s confidence in the company’s future prospects and justify the Buy rating.

FSV’s price has also changed slightly for the past six months – from $185.450 to $194.000, which is a 4.61% increase.