Join        Login             Stock Quote

CIBC Reduces PT On Firstservice (FSRV) To C$37 On Weak 1Q, Lowers EPS Estimates

 April 25, 2012 11:08 AM

(By Balachander S) CIBC World Markets Inc. lowered its price target and EPS estimates on FirstService Corp. (TSE: FSV) (NASDAQ: FSRV), saying the company's first-quarter results were weaker than expected.

"At current stock levels, FirstService represents a compelling opportunity, with investors buying Colliers and the residential property management division and receiving FAS as a free option," CIBC wrote in a note.

The brokerage maintained its "Sector Outperformer" rating and reduced price target on the stock to C$37 from C$40. CIBC also slashed 2012 EPS estimate for the company to US$1.77 from US$2.19 and 2013 EPS estimate to US$2.50 from US$2.60.

[Related -CIBC Lifts PT On Firstservice (FSRV) To C$40, Retains 'Sector Outperformer']

The company's Q1 revenue of $490 million was shy of consensus at $498 million and adjusted loss of $0.10 missed consensus estimated of $0.20, CIBC noted. The miss was caused primarily by FAS, as lower foreclosure volumes and increased pricing pressure led to a 640 bps margin decline Y/Y to 3.4 percent.

CIBC said Colliers saw strong traction in the U.S. in Q1, with revenue up 25 percent Y/Y due to market share gains as new hires became productive and increased traction from the corporate solutions offering. FirstService acquired Colliers UK in Q1, which should aid in the roll-out of the global services offering.

The brokerage expects volume weakness at FAS through 2012, although sees growth opportunities (shadow inventory, REO) in 2013 and beyond. 

[Related -Retail In The Spotlight]

Shares of the real estate-related services provider dipped 0.75 percent to trade at $27.95 on the Toronto Stock Exchange on Wednesday. On the NASDAQ, the stock fell 0.63 percent to $28.33.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Seven Bullish Construction Stocks
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.