The Globe and Mail reports in its Thursday, Feb. 29, edition that Scotia Capital analyst Phil Hardie has reaffirmed his "sector perform" call for Element Fleet Management. The Globe's David Leeder writes that Mr. Hardie boosted his share target by a loonie to $26. Analysts on average target the shares at $26.67.
Mr. Hardie says in a note: "Element capped off a record 2023 with solid Q4 results that came in line with street expectations, but a touch shy of our forecasts. Key highlights included: 1) management reaffirming 2024 guidance, 2) an announcement that the company will report financial results in U.S. dollars starting in 2024, and 3) a stronger-than-expected top line. A bit of a negative surprise was an almost 30 basis point sequential compression in net financial margins. That said, we had modelled a compression in both the gross and net margins through 2024 and into 2025, with the Q4/23 step down generally reflecting our expected run-rate for the first part of the year, and as a result not having a material impact on our estimates or outlook.
Overall, a solid quarter that likely demonstrated solid execution, continued operational momentum, and progress against recently announced strategic initiatives."
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