01:01 PM EDT, 06/04/2025 (MT Newswires) -- Stifel has trimmed its one year target on NFI Group ( NFYEF ) by $1, to $22, but kept its Buy rating on the stock.

Analyst Daryl Young has a negative take on NFI's US$600 million second lien notes offering (expected to close June 13). The notes carry a 9.25% interest rate and mature on July 1, 2030.

"While we are encouraged to see NFI finally having a comprehensive debt package in place, with appropriate liquidity (>$300 million available post transaction), the notes offering was larger and much more expensive than we had anticipated," notes analyst Daryl Young.

While some elevated costs are understandable, as NFI is a first time issuer, Young believes the offering is expensive and the 5-year term is long, since the company is on the cusp of improving throughput volumes and returning to healthy FCF generation.

"In our view, the repayment terms make it unlikely that NFI will retire the debt before July 1st 2028."

NFI has a Buy rating and a $22 target.

Price: 15.04, Change: -0.09, Percent Change: -0.59