In a report released yesterday, John Gibson CFA from BMO Capital maintained a Buy rating on Mullen Group, with a price target of C$16.00.
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John Gibson CFA has given his Buy rating due to a combination of factors that highlight the Mullen Group’s resilience and potential for future growth. Despite facing a challenging freight market, Mullen’s Q2/25 results showed a 9% year-over-year revenue growth driven by acquisitions, and the company maintained strong liquidity and flexibility with its capital expenditure budget. The management’s outlook for 2026 is optimistic, with expectations of a potential inflection point in the freight market driven by large Canadian projects.
Furthermore, Mullen’s valuation is seen as attractive compared to its peers, trading at a significant discount on forward P/E and EV/EBITDA metrics. The company’s robust free cash flow yield of over 15% further supports the Buy rating. Although there were some margin compressions and the EBITDA fell slightly below expectations, the overall financial health and strategic positioning of Mullen make it a compelling investment opportunity according to John Gibson CFA.
Gibson CFA covers the Energy sector, focusing on stocks such as North American Construction Group, Parkland, and CES Energy Solutions. According to TipRanks, Gibson CFA has an average return of 20.1% and a 61.09% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$14.00 price target.