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Stifel Canada Lifts NFI Group Price Target by $0.50 to $26.00

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Stifel Canada has raised its price target on the shares of NFI Group (NFI.TO) by $0.50, to $26.00 after it updated its estimates following the company's first quarter results.

In a note, analyst Daryl Young, who is maintaining a buy rating on the shares, said the first quarter was a solid start to the year, reflecting momentum in the manufacturing division, with profitability improving significantly.

Bus deliveries were slower than expected, but management noted that April was very strong and that volumes should increase across the year, including with the ramp up of the All-Canadian build facility.

Young believes NFI could surprise to the upside on margins across the back half of the year. Key issues around tariffs, seat supply, and battery recall all remain in check, he adds.

"Big picture, we think the worst is behind NFI, and expect to see valuation expansion across the year as it regains its execution track record."

Price: $20.44, Change: $-0.09, Percent Change: -0.41%

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