The Globe and Mail reports in its Tuesday, March 18, edition that ATB Capital Markets analyst Chris Murray has reaffirmed his "outperform" recommendation for NFI Group. The Globe's David Leeder writes in the Eye On Equities column that Mr. Murray gave his share target a $2 boost to $26. Analysts on average target the shares at $20.20. Mr. Murray says in a note: "The company is taking steps to localize more [of] its production processes, sources of supply and inventory levels with initiatives underway to scale fully domestic production capabilities for Canadian transit customers over the medium term,. NFI believes current public funding allocations support its outlook for 2025 and 2026 with competitive conditions and its propulsion-agnostic offerings positioning it favourably should U.S.-based funding and sentiment shift in favour of ICE [internal combustion engine] buses (i.e., away from ZEBs) over the medium term. Management noted that should such a scenario unfold beyond 2025 (all slots are sold for 2025), the company's ability to scale ICE production would likely offset the impact of lower gross margin dollars per unit from producing fewer ZEBs [zero-emission buses]."
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