National Bank National Bank's Jaeme Gloyn said Element Fleet Management Corp. remains his “top pick” with an “outperform” rating and $28 target (both unchanged). The average on the Street is $23.65.
“We like the setup into Q1-23 for several reasons,” he said. “We believe management sufficiently addressed any perceived funding concerns last week, but Q1-23 results and outlook commentary will cement this view; we expect new CEO Laura Dottori-Attanasio will take a more prominent role and reenergize confidence in the near- to long-term outlook; we expect management will upgrade 2023 guidance; and lastly, we see upside to our in-line with consensus forecasts primarily given an unexpectedly strong used vehicle price market but also because of ongoing organic growth momentum. We view the current 9-10-per-cent FCF yield as extremely attractive for investors looking to add or establish a position.”