Goldman Sachs Increases Price Target on GFL Environmental to $45.50, Maintains Buy Rating
June 21, 2023
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GFL ($NYSE:GFL) Environmental Inc. is an environmental services company that provides solid waste management and infrastructure services to residential, commercial, and industrial customers across Canada and the United States. Recently, Goldman Sachs has increased their price target for GFL Environmental to $45.50 and maintained their Buy rating. Goldman’s analysts believe that GFL is well-positioned to take advantage of the strong demand for its services, which could lead to more upside potential in the near term. They also noted that GFL’s strong balance sheet will give it the ability to invest in growth initiatives and capitalize on opportunities as they arise.
With this price target increase, Goldman joins a growing chorus of analysts who are bullish on GFL Environmental. As such, it appears that GFL is well-positioned to capitalize on the growth opportunities in the industry and continue to reward shareholders with solid returns.
Share Price
On the same trading day, GFL Environmental opened at $36.8 and closed at $36.8, up 0.7% from its prior closing price of $36.6. The move by Goldman Sachs is a sign of confidence in the company’s future prospects and its ability to deliver value to shareholders. The increased price target is expected to encourage investors to take a closer look at GFL Environmental’s fundamentals and long-term growth potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gfl Environmental. More…
| Total Revenues | Net Income | Net Margin |
| 7.16k | -558.6 | -4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gfl Environmental. More…
| Operations | Investing | Financing |
| 1.11k | -2.03k | 836.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gfl Environmental. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.83k | 12.87k | 18.8 |
Key Ratios Snapshot
Some of the financial key ratios for Gfl Environmental are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.3% | – | -3.4% |
| FCF Margin | ROE | ROA |
| 3.7% | -2.3% | -0.8% |
Analysis
At GoodWhale, after analyzing the fundamentals of GFL ENVIRONMENTAL, we have come to the conclusion that the company is strong in growth, medium in dividend and weak in asset, profitability. After assessing the company, we have classified it as a ‘cheetah’ type of company, meaning that it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company is likely to be of interest to investors who are seeking higher potential returns through faster growth but are willing to accept a higher risk profile. Despite the higher risk, GFL ENVIRONMENTAL has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it is likely to pay off debt and fund future operations. More…
Peers
The company offers a full range of services, including waste collection, transfer, disposal, and recycling. GFL also provides environmental consulting and remediation services. The company’s competitors include Wangneng Environment Co Ltd, JPX Global Inc, and Cleanaway Waste Management Ltd.
– Wangneng Environment Co Ltd ($SZSE:002034)
Wangneng Environment Co Ltd is a Chinese company that provides environmental protection services. It has a market cap of 8.49B as of 2022 and a return on equity of 10.9%. The company offers environmental protection services such as solid waste treatment, sewage treatment, and air pollution control.
– JPX Global Inc ($OTCPK:JPEX)
JPX Global Inc is a publicly traded company with a market cap of $42.81 million as of 2022. The company has a return on equity of 9.79%. JPX Global Inc is a provider of transportation and logistics services. The company offers a variety of services including airfreight, oceanfreight, trucking, warehousing, and customs brokerage.
– Cleanaway Waste Management Ltd ($ASX:CWY)
Cleanaway Waste Management Ltd is an Australian-based company that provides waste management services across a range of industries. The company’s services include waste collection, disposal, and recycling. Cleanaway has a market cap of 5.85B as of 2022 and a Return on Equity of 3.57%. The company’s strong market position and growing customer base has helped it to generate consistent profits and shareholder returns.
Summary
Goldman Sachs recently adjusted their price target of GFL Environmental from $40 to $45.50 and maintained its ‘buy’ rating, indicating a strong investment potential of the company. GFL Environmental is a diversified environmental services company that provides a broad range of services and products to commercial, industrial and institutional customers in Canada and the United States. Goldman Sachs’s analysis looks at the company’s growth potential, future prospects, competitive advantages, and management.
They have concluded that GFL Environmental is an attractive long-term investment with its strong competitive advantages, robust portfolio of services, and experienced management team. Investors are encouraged to take advantage of the upward trend in GFL Environmental’s share price before it reaches $45.50.
