Analyst John Gibson CFA of BMO Capital maintained a Hold rating on Badger Infrastructure Solutions (BADFF – Research Report), retaining the price target of C$45.00.
John Gibson CFA has given his Hold rating due to a combination of factors including the company’s strong quarterly performance and the current macroeconomic uncertainties. Badger Infrastructure Solutions reported a solid quarter with a notable increase in adjusted EBITDA, surpassing expectations. The company has also transitioned to a consolidated reporting structure, which may streamline operations and reporting.
Despite these positive developments, the slower pace of truck builds and the cautious approach to capital allocation towards the NCIB reflect some near-term challenges. Additionally, while the long-term growth outlook remains promising, the execution of the growth strategy may take several years to reach target levels. These factors contribute to the Hold rating, as the potential upside is balanced by the risks and uncertainties in the current environment.
Gibson CFA covers the Energy sector, focusing on stocks such as Precision Drilling, CES Energy Solutions, and Trican Well Service. According to TipRanks, Gibson CFA has an average return of 16.7% and a 49.64% success rate on recommended stocks.