FirstService Corp (FSV: CA) has been a notable player in the real estate services sector, consistently delivering strong financials and market presence. With its earnings report set for February 4, 2025, investors are closely watching the stock’s trajectory amid recent analyst ratings and market conditions.
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Recent Performance and Market Conditions:
At its last closing, FirstService Corp’s stock price stood at CAD 266.89, reflecting a +0.63% gain in the past week, +6.05% over the past month, and +16.80% in the last year. Over the past five years, the company has demonstrated impressive 124.42% revenue growth and 52.42% earnings growth, positioning it among the top-performing firms in its sector.
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Despite its growth, FirstService Corp’s high debt-equity ratio of 111.8% raises some caution, indicating significant leverage. The real estate services sector, where FirstService operates, has shown a sector-wide 1-month return of 2.42%, indicating a stable market environment.
Stock Target Advisor’s Analysis on FirstService Corp:
Stock Target Advisor has given FirstService Corp a “Slightly Bullish” rating, based on 11 positive signals and 6 negative signals. Despite these concerns, the 12-month target price by Stock Target Advisor is CAD 230, representing a -13.82% projected price change from the current level.
Analysts remain cautious on FirstService Corp, with an average rating of “Hold” from 3 analysts. The target price range varies significantly:
- Raymond James: Buy, target price CAD 225
- TD Securities: Hold, target prices CAD 268, CAD 194, CAD 250
- Scotia Capital: Hold, target price CAD 200
Despite mixed opinions, the maximum average target price among analysts is CAD 268, while the minimum stands at CAD 194.
Conclusion:
FirstService Corp continues to perform well in terms of revenue growth, profitability, and market expansion. However, concerns over valuation and high leverage make it a stock that investors should approach with caution.
With earnings report due on February 4, 2025, investors will be keen to see whether FirstService Corp can justify its premium valuation and sustain its growth momentum.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
