Stifel Nicolaus analyst Shlomo Rosenbaum has maintained their bullish stance on GFL stock, giving a Buy rating on January 5.
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Shlomo Rosenbaum has given his Buy rating due to a combination of factors tied to GFL Environmental’s growth strategy and industry position. He views the newly announced $1 billion senior notes issuance as primarily a way to replenish balance sheet capacity so the company can continue pursuing sizeable acquisitions rather than as a sign of financial strain. Based on management’s comments and his own estimates, he expects GFL to deploy this capital into deals that could add meaningful EBITDA while only nudging leverage modestly higher, keeping the balance sheet within a range he considers acceptable for a growth-focused consolidator. In his assessment, the near-term uptick in leverage is outweighed by the earnings and cash flow accretion that well-executed acquisitions can deliver over time.
Rosenbaum also emphasizes that GFL is not a name for investors seeking rapid de-leveraging, but instead for those prioritizing long-term expansion and margin improvement. He believes the company is particularly well positioned to continue rolling up smaller operators in the solid waste sector for many years, benefiting from scale advantages and operational efficiencies. While his formal model shows leverage gradually declining, he notes this is conservative because it does not fully reflect the additional acquisitions he expects in reality. Overall, the combination of a clear acquisition-driven growth plan, manageable leverage dynamics, and a strong strategic position in an industry ripe for consolidation underpins his Buy recommendation on GFL.
In another report released on January 5, RBC Capital also maintained a Buy rating on the stock with a $59.00 price target.