Research
Element Fleet Management Price Target Lowered at RBC, TD
Analysts at RBC Capital Markets and TD Securities lowered their price targets on Element Fleet Management Corp. (EFN.TO) to $40 from $47, and to $38 from $41, respectively, on Friday.RBC analyst Bart Dziarski maintained an Outperform rating on shares of the Toronto-based automotive fleet management company following its quarterly results, reported after market close on Wednesday.The stock declined $2.07, or 6.7%, to $28.90 on the Toronto Stock Exchange Thursday."EFN traded down 7% despite an in-line quarter, which marks the 2nd consecutive quarter of meaningful move down following in-line results (in Q4/25 EFN traded down 4%)," Dziarski said in a note to clients."Management maintained 2026 guidance and we believe the bar for delivering strong results for the remainder of the year has been raised particularly for service revenue growth (+6% YoY in Q1/26) to accelerate to 10%+," the analysts said.TD analyst Graham Ryding maintained a Buy rating on Element."We believe investors have concerns over the softer 'capital light' services revenue growth (vs. double-digits in 2022-2024) and originations (-4% y/y in Q1/26)," Ryding said in a note to clients."Valuation may remain compressed until EFN shows better execution here," the analyst said.
$EFN.TO