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CIBC Confirms Outperformer Rating and Target of $41.00 on Element Fleet Management Ahead of Q1 Results

-- CIBC Capital Markets maintained its outperformer rating on the shares of Element Fleet Management (EFN.TO) and its C$41.00 price target ahead of the company's first-quarter financial results.

The bank expects a "solid" Q1 result. CIBC believes beats on originations and servicing income "could restore positive share price momentum".

CIBC said its Q1 earnings per share estimate of $0.34 is unchanged and in line with consensus and implies a year-over-year (y-o-y) growth of 22%. It forecast 70% y-o-y growth in syndication revenue.

"We maintain our Outperformer rating premised on the expectation for 15% EPS growth in 2026 and a P/E multiple that is no longer over extended," said analyst Paul Holden. "We expect increasing attention on originations as EFN missed its 2025 and 2024 origination guidance."

The bank's Q1 revenue forecast of $314 million implies 14% y-o-y growth. It also modeled Q1 expense growth of 7% y-o-y, with an operating margin of 57.6%.

Price: $32.47, Change: $+0.13, Percent Change: +0.40%

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