11:29 AM EDT, 03/11/2025 (MT Newswires) -- National Bank has lifted its target on GFL Environmental ( GFL ) to $75 (from $70) and reiterated its Outperform rating following the closure of GFL's Environmental Services business sale. GFL retains a $1.7 billion equity interest (44%) in the business and realized net cash proceeds of ~$6.2 billion, notes National Bank.

"With some large moving parts, we updated our estimates to account for the sale," writes analyst Rupert Merer. Proceeds should be used repay up to $3.75 billion of debt in Q1'25E, which lowers 2026E leverage ratio to ~3.0x (was 4.1x in Q4). The remaining proceeds should be used for up to $2.25 billion in share repurchases and general corporate purposes, Merer adds. The sale closure should improve free cash flow conversion and reignite M&A at GFL, helping to accelerate growth.

Price: 67.52, Change: -0.01, Percent Change: -0.01