Enerflex Ltd. (TSE:EFX) Stock Has Average Price Target of C$37.69 According to Brokerages

Key Points

• Analysts maintain a positive outlook: Enerflex has a consensus “Moderate Buy” rating from nine analysts, with an average 12-month price target of C$37.69. Several firms recently raised their targets, including ATB Cormark to C$52 and Raymond James to C$49.
• Recent operating performance was mixed: Enerflex reported quarterly revenue of C$826.9 million and EPS of C$0.36, while profitability remained modest with a 2.53% net margin and 5.26% return on equity.
• The company increased its dividend, but valuation is a concern: The quarterly dividend rose to C$0.045 per share, producing a 0.5% yield. However, the stock’s P/E ratio of 79.59 and at least one below-market price target highlight concerns about its earnings valuation.

Shares of Enerflex Ltd. (TSE:EFX - Get Free Report) have received a consensus rating of "Moderate Buy" from the nine research firms that are currently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is C$37.69.

EFX has been the topic of several recent analyst reports. Raymond James Financial lifted their target price on shares of Enerflex from C$48.00 to C$49.00 and gave the stock an "outperform" rating in a report on Friday. ATB Cormark Capital Markets upped their price target on shares of Enerflex from C$47.00 to C$52.00 and gave the company an "outperform" rating in a report on Friday. Acumen Capital raised their price target on Enerflex from C$42.00 to C$48.00 and gave the company a "buy" rating in a research report on Friday. Finally, National Bank Financial set a C$42.50 price objective on Enerflex and gave the stock an "outperform" rating in a research note on Thursday, June 18th.

Enerflex Price Performance

EFX opened at C$35.02 on Monday. The firm has a market cap of C$4.27 billion, a P/E ratio of 79.59 and a beta of 2.04. The company has a debt-to-equity ratio of 51.03, a quick ratio of 1.20 and a current ratio of 1.19. The business has a 50 day moving average price of C$30.57 and a 200 day moving average price of C$32.50. Enerflex has a twelve month low of C$14.86 and a twelve month high of C$39.95.

Enerflex (TSE:EFX - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported C$0.36 EPS for the quarter. Enerflex had a net margin of 2.53% and a return on equity of 5.26%. The company had revenue of C$826.90 million for the quarter. Research analysts forecast that Enerflex will post 0.734413 EPS for the current year.

Enerflex Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 2nd. Shareholders of record on Wednesday, September 2nd were issued a $0.0450 dividend. This is an increase from Enerflex's previous quarterly dividend of $0.0425. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $0.18 dividend on an annualized basis and a yield of 0.5%. Enerflex's payout ratio is 27.03%.

Enerflex News Roundup

Here are the key news stories impacting Enerflex this week:

• Positive Sentiment: Enerflex’s shares received several bullish analyst revisions. Acumen Capital raised its target from C$42 to C$48 and assigned a “buy” rating; ATB Cormark lifted its target from C$47 to C$52 with an “outperform” rating; and Raymond James increased its target from C$48 to C$49, also maintaining an “outperform” rating. These targets imply substantial potential upside from recent trading levels. Tickerreport analyst coverage
• Positive Sentiment: The company announced a 450-megawatt data-center power deal, strengthening the investment case that Enerflex can benefit from surging electricity and natural-gas infrastructure demand tied to artificial-intelligence data centers. The contract has been identified as the main catalyst behind the recent increase in investor interest. Why Enerflex Is Up After Landing a 450-Megawatt Data Center Power Deal
• Neutral Sentiment: Enerflex completed the divestiture of its Asia Pacific operations. The sale could sharpen management’s focus on core markets and support capital allocation, although exiting the region may also reduce the company’s revenue base. Enerflex Completes Asia Pacific Divestiture
• Negative Sentiment: Valuation remains a concern. Coverage has questioned whether Enerflex is priced too richly relative to its earnings, particularly given its elevated reported price-to-earnings ratio and modest profitability. Is Enerflex Priced Too Richly for Its Earnings?
• Negative Sentiment: CIBC raised its price target to C$30, but that target remains below recent trading levels, signaling a more cautious view than the other brokers and potentially weighing on sentiment. Enerflex Price Target Raised to C$30 at CIBC

About Enerflex

Enerflex is a leading provider of modular natural gas, power technology and treated water solutions, delivering value through disciplined execution and a deliberate approach to where we compete. Our customer focused delivery model supports operational excellence, innovation, and scalability across our global footprint with a focus on creating long-term shareholder value. With approximately 4,400 engineers, manufacturers, technicians, professionals, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future.

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