Analysts modestly lowered NFI Group’s price target to CA$22.58, reflecting near-term supply chain challenges despite expectations for earnings inflection in H2 2025 and positive demand and defense trends.
Analyst Commentary
- Bullish analysts see an inflection point in earnings in H2 2025 as seat supplier issues are expected to ease.
- Price targets were raised in anticipation of improved earnings momentum.
- Demand trends in Q2 have held better than feared, particularly as Canadians continued to travel.
- Healthy trends in business aviation are seen as supportive for ongoing performance.
- Improving outlook for defense spending is expected to benefit NFI Group.
What's in the News
- NFI Group reaffirmed FY2025 revenue guidance at $3.8 billion to $4.2 billion.
- New Flyer unveiled an optional hydrogen four-tank module for its Xcelsior CHARGE FC 40-foot bus, boosting fuel capacity by 50% and extending range by up to 120 miles, already in successful real-world deployment in California.
- New Flyer secured a contract from Suffolk County Transit for up to 132 buses over five years, including 92 hybrid-electric and 40 battery-electric buses, reinforcing a strong ongoing partnership and expanding New Flyer’s manufacturing backlog.
Valuation Changes
Summary of Valuation Changes for NFI Group
- The Consensus Analyst Price Target has fallen slightly from CA$23.64 to CA$22.58.
- The Net Profit Margin for NFI Group has significantly risen from 2.03% to 2.49%.
- The Future P/E for NFI Group has risen from 22.13x to 23.82x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.