GFL Environmental (NYSE:GFL) Cut to Underweight at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. downgraded GFL Environmental from "neutral" to "underweight" with a $42 price target (roughly an 8% upside), even as the Street consensus remains a Moderate Buy with an average target near $56.
• Market reaction centers on GFL's announced acquisition of Secure Waste Infrastructure, which is being financed about 80% in stock and 20% cash, raising dilution and integration execution concerns that have pressured the share price.
• Shares opened around $38.89 (down ~9.7%), after GFL posted a quarterly EPS beat ($0.26 vs. $0.14) but missed revenue expectations; the stock trades at a low trailing PE of roughly 5.7.

GFL Environmental (NYSE:GFL - Get Free Report) was downgraded by equities research analysts at JPMorgan Chase & Co. from a "neutral" rating to an "underweight" rating in a report issued on Tuesday,Finviz reports. They presently have a $42.00 price target on the stock. JPMorgan Chase & Co.'s target price points to a potential upside of 8.00% from the company's previous close.

A number of other brokerages have also recently issued reports on GFL. Weiss Ratings cut shares of GFL Environmental from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, February 9th. Wolfe Research started coverage on shares of GFL Environmental in a report on Friday, March 13th. They issued an "outperform" rating for the company. Scotiabank dropped their price objective on shares of GFL Environmental from $57.00 to $56.00 and set a "sector outperform" rating for the company in a research note on Thursday, February 12th. Citigroup lowered their target price on shares of GFL Environmental from $58.00 to $56.00 and set a "buy" rating for the company in a research note on Friday, January 16th. Finally, Royal Bank Of Canada lifted their target price on shares of GFL Environmental from $59.00 to $60.00 and gave the stock an "outperform" rating in a research note on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $56.00.

GFL Environmental Trading Down 9.7%

Shares of GFL Environmental stock opened at $38.89 on Tuesday. GFL Environmental has a 12-month low of $38.38 and a 12-month high of $52.00. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 1.05. The stock has a market cap of $13.92 billion, a PE ratio of 5.72, a price-to-earnings-growth ratio of 3.32 and a beta of 0.84. The company has a 50-day moving average of $42.85 and a two-hundred day moving average of $43.80.

GFL Environmental (NYSE:GFL - Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.12. GFL Environmental had a net margin of 56.61% and a return on equity of 3.66%. The company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.67 billion. During the same period last year, the company posted ($0.58) earnings per share. The firm's quarterly revenue was up 7.3% compared to the same quarter last year. On average, research analysts anticipate that GFL Environmental will post 0.58 EPS for the current fiscal year.

Hedge Funds Weigh In On GFL Environmental

Several hedge funds and other institutional investors have recently made changes to their positions in GFL. Norges Bank acquired a new position in shares of GFL Environmental during the 4th quarter valued at $149,466,000. Maverick Capital Ltd. lifted its holdings in shares of GFL Environmental by 216.5% during the 4th quarter. Maverick Capital Ltd. now owns 5,023,417 shares of the company's stock valued at $215,761,000 after acquiring an additional 3,436,419 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of GFL Environmental by 17.6% during the 4th quarter. Capital Research Global Investors now owns 21,863,632 shares of the company's stock valued at $939,043,000 after acquiring an additional 3,267,936 shares in the last quarter. Nordea Investment Management AB lifted its holdings in shares of GFL Environmental by 40.8% during the 4th quarter. Nordea Investment Management AB now owns 6,673,954 shares of the company's stock valued at $290,083,000 after acquiring an additional 1,932,442 shares in the last quarter. Finally, UBS Group AG lifted its holdings in shares of GFL Environmental by 203.9% during the 3rd quarter. UBS Group AG now owns 1,946,471 shares of the company's stock valued at $92,224,000 after acquiring an additional 1,305,953 shares in the last quarter. Institutional investors and hedge funds own 64.70% of the company's stock.

Key Stories Impacting GFL Environmental

Here are the key news stories impacting GFL Environmental this week:

• Positive Sentiment: Company statement calls the deal immediately accretive with improved margins, higher adjusted free cash flow conversion, and says net leverage is neutral on a pro forma basis. GFL Environmental and SECURE Waste Infrastructure announce acquisition
• Positive Sentiment: At least one outlet reports a raised price target on GFL following the announcement, signaling some analyst support for the strategic rationale. GFL Environmental NYSE: GFL Price Target Raised to $49.00
• Neutral Sentiment: Deal confirms geographic expansion into Western Canada and deeper exposure to industrial and energy-linked waste services; multiple outlets covered the terms and enterprise value in the morning. GFL Environmental to Buy Secure Waste Infrastructure
• Neutral Sentiment: Market and media reports (Bloomberg/Reuters) foreshadowed the deal, so part of the move reflects confirmation and detail disclosure rather than a complete surprise. GFL nears deal to buy Secure Waste for over $4.3 billion
• Negative Sentiment: Market reaction centered on the financing mix — the deal is ~80% paid in GFL shares and ~20% cash — raising dilution concerns and pressuring the stock despite management’s accretion claims. GFL slides as investors digest large, mostly stock-funded acquisition plan
• Negative Sentiment: Investors may also be discounting integration execution risk and the company’s near-term financial flexibility after another sizeable deal; markets often punish roll-up stories until accretion, synergy delivery and deleveraging are proven. GFL Environmental to Buy Secure Waste in C$6.4 Billion Deal

GFL Environmental Company Profile

GFL Environmental Inc is a leading North American provider of diversified environmental services, offering comprehensive solutions across solid waste management, liquid waste management, soil remediation and infrastructure services. The company's core business activities include residential, commercial and industrial waste collection, recycling, composting and landfill management. In addition to traditional waste services, GFL provides specialized liquid waste hauling, treatment and disposal services as well as environmental consulting to support industrial and municipal clients in meeting regulatory and sustainability goals.

Founded in 2007 by entrepreneur Patrick Dovigi, GFL Environmental has pursued an aggressive growth strategy driven by strategic acquisitions and organic expansion.

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