Globe says Element Financial maintained at "outperform"
The Globe and Mail reports in its Wednesday edition that BMO Nesbitt Burns analyst Tom MacKinnon came off restriction on Element Financial ($18.71) following the closing of its $8.6-billion acquisition of GE Capital's United States-based fleet operations. The Globe's David Leeder writes in the Eye On Equities column that Mr. MacKinnon says, "In a business where size and scale matter, [Element Financial] is now the largest fleet manager in North America." He says, "We see an opportunity to increase fleet fee service income." He reiterated his "outperform" rating and increased his target price for the stock to $24 from $23. Analysts on average target the shares at $25. Mr. MacKinnon says: "Post the deal we see ample opportunity for [Element] to grow in the fleet both organically and through acquisitions. In our view, [Element] is the best-positioned buyer because of the cost savings it can produce." The Globe's Tim Shufelt was bullish on Element on June 3. The shares were then worth $19.38. The Eye column reported on July 1 that Raymond James analyst Michael Overvelde had reiterated his "outperform" rating on Element. Mr. Overvelde maintained his share target at $24. Element could then be had for $19.75.