Loop Capital analyst Jeffrey Stevenson maintains $BrightView Holdings (BV.US)$ with a buy rating, and adjusts the target price from $18 to $20.
According to TipRanks data, the analyst has a success rate of 59.7% and a total average return of 9.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $BrightView Holdings (BV.US)$'s main analysts recently are as follows:
BrightView exhibited a mixed financial performance in its fourth-quarter results, with a slight increase in revenue overshadowed by earnings that failed to meet expectations and projections for FY25 that are underwhelming compared to market predictions. The company's landscape maintenance segment is undergoing a downturn in revenue, influenced by the winding down of its BES aggregator subcontractor business and the sell-off of USL. Analysts point out that to revitalize its core landscape maintenance revenue growth, the company will need to invest in workforce expansion and customer service enhancements. These investments are likely to affect EBITDA margins adversely, which are currently below the pre-pandemic benchmark. Given these circumstances, there is skepticism regarding BrightView's ability to achieve significant revenue growth and maintain desirable EBITDA margins at the same time.
The company's alignment with its strategic transformation, termed 'One BrightView', is acknowledged as contributing to its Q4 outcomes and the preliminary guidance for FY25. Despite the stock experiencing a decline post-earnings, which was attributed to heightened anticipations, there's an optimistic projection for the return to positive revenue growth in landscaping by FY25, alongside an ongoing expansion in segment margin.
The firm expressed that their outlook remains unchanged as BrightView completed fiscal year 2024 with a quarter that met expectations, contained no significant surprises, and encapsulated a year filled with constructive changes.
Note:
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