01:22 PM EDT, 04/08/2024 (MT Newswires) -- APi Group ( APG ) is facing near-term headwinds, with revenue dropping in Q1 because of strategic project run-off and pass-through pricing, RBC Capital Markets said in a note emailed Monday.

For the quarter, RBC said that its revenue forecast of $1.59 billion for APi is driven by year over year drops of 0.8% in safety services and 2.6% in specialty services.

The firm added that EBITDA and free cash flow in 2024 would likely be adjusted due to restructuring.

"However, we think the underlying fundamentals remain solid with double-digit growth in US Life and Safety," the firm said. "In addition, it should benefit from reshoring, share gains, and consolidation of the fragmented industry."

RBC lifted APi's price target to $45 from $36 with a sector perform rating.

Price: 39.59, Change: +0.30, Percent Change: +0.76