Update shared on 27 Nov 2025
Analysts have modestly reduced their price targets for FirstService following softer-than-expected quarterly results. They have lowered expectations by a range of $2 to $15 per share as they factor in external headwinds and near-term challenges in the company's key segments.
Analyst Commentary
Analyst coverage of FirstService in the wake of its latest results highlights a blend of tempered optimism and near-term caution. The following summarizes key bullish and bearish takeaways from recent commentary.
Bullish Takeaways- Bullish analysts view the recent share price weakness as an attractive entry point for long-term investors, noting compelling valuation levels following the post-earnings selloff.
- Expectations are that near-term challenges, particularly in the roofing and restoration unit, will prove temporary. Some analysts see a possible inflection point ahead as external pressures subside.
- While short-term guidance has been revised downward, some analysts anticipate stronger growth returning by 2026 as headwinds dissipate.
- The company’s diversified business model and positioning are seen as strengths and may support future performance even in a challenging macroeconomic environment.
- Bearish analysts remain cautious due to ongoing macro-driven challenges and softer organic growth in key segments, especially roofing.
- There is concern over reduced earnings visibility in the near term, which has led to multiple downward revisions in price targets and forward estimates.
- Some analysts note that while the valuation appears attractive, execution risks remain elevated given recent performance trends.
- The company's updated guidance for 2025 has fueled some skepticism about its ability to rebound quickly from current challenges.
What's in the News
- FirstService Corporation issued revenue guidance for the fourth quarter of 2025, expecting revenues to remain roughly in line with the prior year quarter. (Key Developments)
- FirstService Residential was selected to provide full-service property management for the Elkins Park House Condominium Association, a high-rise community in Pennsylvania. (Key Developments)
- FirstService Corporation (TSX:FSV) was added to the FTSE All-World Index (USD). (Key Developments)
Valuation Changes
- The discount rate has risen slightly, increasing from 8.14% to 8.21%.
- Revenue growth expectations have fallen, moving from 5.25% down to 4.57%.
- The net profit margin estimate has decreased from 4.11% to 3.35%.
- The future P/E multiple has increased, moving from 42.77x to 52.38x.
- The fair value assessment remains unchanged at CA$264.61 per share.
Disclaimer
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