FirstService (NASDAQ:FSV) Price Target Raised to $175.00

FirstService (NASDAQ:FSV) (TSE:FSV) had its target price lifted by Scotiabank from $170.00 to $175.00 in a report released on Friday,Benzinga reports. Scotiabank currently has a sector outperform rating on the financial services provider’s stock.

Several other brokerages also recently issued reports on FSV. Raymond James Financial reiterated an “outperform” rating and set a $190.00 price objective on shares of FirstService in a research report on Friday. Canadian Imperial Bank of Commerce set a $170.00 price objective on FirstService in a report on Thursday, October 15th. TD Securities restated a “buy” rating and issued a $195.00 target price on shares of FirstService in a research report on Friday, July 24th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $144.00 target price on shares of FirstService in a research note on Friday, July 24th. Finally, Weiss Ratings raised FirstService from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday. Eight investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $179.82.

FirstService Stock Performance

FirstService stock opened at $143.67 on Friday. The company has a quick ratio of 1.63, a current ratio of 1.52 and a debt-to-equity ratio of 1.66. The firm has a 50-day moving average price of $135.75 and a two-hundred day moving average price of $138.76. The firm has a market capitalization of $6.27 billion, a price-to-earnings ratio of 43.80, a PEG ratio of 3.18 and a beta of 0.95. FirstService has a 52-week low of $119.41 and a 52-week high of $171.88.

FirstService (NASDAQ:FSV) (TSE:FSV) last posted its earnings results on Thursday, October 22nd. The financial services provider reported $1.89 EPS for the quarter, topping the consensus estimate of $1.84 by $0.05. FirstService had a net margin of 2.59% and a return on equity of 19.66%. The firm had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.48 billion. During the same quarter in the prior year, the firm earned $1.76 EPS. FirstService’s quarterly revenue was up 5.8% on a year-over-year basis. Sell-side analysts expect that FirstService will post 5.61 earnings per share for the current year.

FirstService Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Wednesday, September 30th were paid a dividend of $0.3050 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.22 annualized dividend and a yield of 0.8%. FirstService’s dividend payout ratio is currently 37.20%.

Institutional Trading of FirstService

Large investors have recently added to or reduced their stakes in the business. Crossmark Global Holdings Inc. boosted its holdings in FirstService by 27.1% during the third quarter. Crossmark Global Holdings Inc. now owns 2,286 shares of the financial services provider’s stock worth $292,000 after buying an additional 488 shares in the last quarter. Louisbourg Investments Inc. increased its holdings in shares of FirstService by 5.7% in the third quarter. Louisbourg Investments Inc. now owns 33,297 shares of the financial services provider’s stock valued at $4,276,000 after buying an additional 1,807 shares in the last quarter. TD Waterhouse Canada Inc. increased its holdings in shares of FirstService by 10.4% in the third quarter. TD Waterhouse Canada Inc. now owns 73,348 shares of the financial services provider’s stock valued at $9,311,000 after buying an additional 6,911 shares in the last quarter. ZWJ Investment Counsel Inc. increased its holdings in shares of FirstService by 1,487.8% in the third quarter. ZWJ Investment Counsel Inc. now owns 44,475 shares of the financial services provider’s stock valued at $5,687,000 after buying an additional 41,674 shares in the last quarter. Finally, Copeland Capital Management LLC increased its holdings in shares of FirstService by 11.9% in the third quarter. Copeland Capital Management LLC now owns 389,749 shares of the financial services provider’s stock valued at $49,841,000 after buying an additional 41,333 shares in the last quarter. 69.35% of the stock is currently owned by institutional investors.

FirstService News Roundup

Here are the key news stories impacting FirstService this week:

• Positive Sentiment: TD raised its price target from $195 to $203 and upgraded FirstService to “buy,” implying substantial upside from recent levels. TD analyst rating
• Positive Sentiment: Stifel Nicolaus increased its target from $185 to $195 and maintained a “buy” rating. Stifel Nicolaus analyst rating
• Positive Sentiment: Scotiabank raised its target from $170 to $175 while moving to a “sector outperform” rating, adding to the constructive analyst outlook. Scotiabank analyst rating
• Positive Sentiment: Third-quarter revenue rose 5.8% year over year to $1.53 billion, while adjusted EPS increased to $1.89 from $1.76 and adjusted EBITDA grew to $169.7 million. Revenue and adjusted EPS exceeded the primary analyst consensus. FirstService third-quarter results
• Neutral Sentiment: Scotia’s $175 target still carries a “sector perform” rating in one report, indicating that valuation and near-term industry conditions may limit upside despite higher estimates. Scotia analyst rating
• Neutral Sentiment: Recent commentary described FirstService as potentially fully priced after a prolonged five-year decline, suggesting investors may require stronger earnings momentum before bidding the stock higher. FirstService valuation commentary
• Negative Sentiment: GAAP operating earnings fell 7.1% to $107.4 million, while GAAP diluted EPS declined to $0.99 from $1.24 and net income attributable to common shareholders dropped 24.9%. The results point to a margin squeeze despite solid top-line growth.
• Negative Sentiment: Management’s earnings call highlighted a drag from the roofing business, which may keep profitability under pressure. Cash generation also weakened, and total liabilities increased to approximately $3.0 billion. FirstService earnings call highlights

About FirstService

FirstService Corporation is a Canadian provider of property management and property services serving customers primarily in the United States and Canada. The company operates through two main businesses: FirstService Residential and FirstService Brands.

FirstService Residential provides property management services for condominium and homeowners’ associations, cooperatives, and other residential communities. Its services include community administration, financial management, maintenance coordination, customer support, and related operational services.

FirstService Brands operates and supports a network of property-service businesses, including companies involved in property restoration, painting, flooring, window treatments, and other residential and commercial services.