$FSV

Loop Capital Initiates Coverage on FirstService With Hold Rating, CA$190.41 Price Target

Stifel Canada Reviews FirstService Q1 Results

Stifel Canada is slightly positive on FirstService (FSV.TO, FSV) after it reported first-quarter results that were a slight beat.Analyst Daryl Young, who is maintaining a buy rating and US$215.000 on the shares of the company, said it was "well-telegraphed" that the first quarter would be a slower start to the year as management focused on shedding low-margin residential contracts, coupled with ongoing roofing headwinds.The first quarter is also seasonally the weakest quarter of the year so the margin impacts in roofing were more amplified, Young added."We expect roofing to remain a drag this year given weak commercial construction activity that has caused heightened competition for repair/replace work (recall ~2/3rds of industry demand is repair and replace over a full cycle). However, our roofing survey work points to a stabilization of the industry (at trough levels)," he writesPrice: $200.72, Change: $-3.83, Percent Change: -1.87%

Majority of FirstService's Revenue "Economically Resilient", Says Stifel Canada

The macro backdrop this year has been increasingly murky with continued weak commercial construction activity, interest rate volatility, and record low consumer sentiment amid the Iran war, notes Stifel Canada.However, analyst Daryl Young sees the majority of First Service's (FSV.TO, FSV) revenue as economically resilient. Young, who is maintaining a buy rating and US$215.00 price target on the stock, says FirstService has also set the bar sufficiently low for 2026 in terms of mid-single-digit organic growth.In 2026, restoration should benefit from inclement winter weather to start the year, while Stifel Canada's roofing survey points to signs of the industry stabilizing (albeit still very challenging). The company has a very strong balance sheet and is poised to play offense should private equity challenges lead to a more attractive M&A environment, Young adds.FirstService reports its fourth-quarter earnings on April 23. Young is forecasting fourth-quarter revenue growth of 4.2% y/y, underpinned by 1.8% M&A growth and 2.4% organic growth.Price: $205.41, Change: $+0.38, Percent Change: +0.19%