09:49 AM EDT, 06/10/2024 (MT Newswires) -- Stifel GMP on Monday reiterated its buy rating on the shares of FirstService ( FSV ) and its US$190.00 price target after the property-services and home-goods company made two acquisitions.

"FSV announced the acquisition of two roofing companies in Florida which combined have ~$150mm of revenue (represents ~3% of FSV's consolidated 2024E revenues). Although the deals were not material in isolation, they mark the first step in the build-out of the roofing platform following the RCA acquisition in December 2023. Recall, we anticipate that RCA will drive outsized near-term growth consistent with what it achieved with prior platform acquisitions (i.e. +20% EBITDA CAGR's since acquiring Century Fire in 2016 and Global Restoration Holdings in 2019). * Furthermore, Florida is a strategically important market for FSV that holds strong growth/cross-sell prospects across several divisions (i.e. restoration, fire safety, and residential property management). As it relates to roofing, Florida has a solid base of existing/aging commercial properties, is a growing market, and benefits from somewhat harsher environmental conditions that support repair/maintenance work in addition to general replacement/new construction work," analyst Daryl Young wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 205.26, Change: -0.70, Percent Change: -0.34