Analyst Devin Dodge of BMO Capital maintained a Hold rating on Enviri, with a price target of $12.50.
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Devin Dodge has given his Hold rating due to a combination of factors impacting Enviri’s performance. The company’s recent quarterly results were below expectations, with the Rail segment underperforming significantly, contributing to a lower-than-anticipated adjusted EBITDA. Although Clean Earth, a division of Enviri, showed promising growth and strong demand, the overall outlook for the Rail and Harsco Environmental segments remains challenging due to sluggish demand and weak industry fundamentals.
Additionally, the company’s financial guidance for the fiscal year 2025 was revised downward, reflecting reduced expectations for the Rail segment and negative free cash flow projections. Despite the potential sale of Clean Earth, which could provide a significant cash distribution to shareholders, there is uncertainty regarding the future performance of the remaining divisions. This combination of mixed performance across divisions and financial uncertainties has led to the Hold rating, as the potential benefits of the Clean Earth sale are counterbalanced by ongoing challenges in other areas of the business.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.50 price target.