Update shared on 31 Oct 2025
Fair value Increased 4.59%Analysts have raised their price target for Finning International, increasing the fair value estimate from approximately C$67.78 to C$70.89. This change reflects improved profit margins and a slightly stronger revenue outlook.
Analyst Commentary
Recent analyst reports point to an evolving outlook for Finning International, with adjustments in price targets reflecting changing views on the company's valuation and execution potential.
Bullish Takeaways- Bullish analysts have significantly raised price targets for Finning International, with some estimates now reaching as high as C$77 per share.
- Upward revisions reflect strong confidence in Finning's ability to grow profit margins, supported by operational improvements and effective cost management.
- The company’s consistent outperformance relative to expectations suggests ongoing strength in both revenue generation and bottom-line results.
- Maintained outperform ratings highlight expectations for continued outperformance versus peers, underpinned by robust demand across key markets.
- Some cautious analysts have adjusted price targets downward, signaling concerns about potential short-term headwinds or execution risks.
- Recent downward revisions indicate caution around volatility in certain markets or broader economic uncertainty affecting demand.
- While the overall analyst sentiment remains positive, these downward adjustments suggest the need to monitor external factors that could impact the company's growth trajectory.
What's in the News
- Between April 1 and May 12, 2025, Finning International repurchased 1,790,600 shares, representing 1.33% of outstanding shares, for CAD 69.31 million as part of a previously announced buyback program. (Key Developments)
- By May 12, 2025, the company had completed the repurchase of 7,626,395 shares, or 5.55% of shares, for a cumulative CAD 302.31 million under the May 6, 2024 buyback plan. (Key Developments)
- From May 12 to June 30, 2025, an additional 232,228 shares, representing 0.17%, were repurchased for CAD 39.69 million under a new buyback announced on May 12, 2025. (Key Developments)
- As of June 30, 2025, all repurchases under the buyback announced on May 12, 2025 have been completed, totaling 232,228 shares at CAD 39.69 million. (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly from CA$67.78 to CA$70.89, reflecting an updated assessment of the company's future prospects.
- Discount Rate decreased modestly to 7.44% from 7.57%. This suggests a marginal reduction in perceived risk.
- Revenue Growth projections improved, as the decline moderated to -2.19% from -2.38% previously.
- Net Profit Margin has increased slightly to 6.75% from 6.61%, indicating expectations for better profitability.
- Future P/E Ratio edged up to 14.43x from 14.22x, indicating modestly higher valuation expectations.
Disclaimer
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