On Friday, Stifel reaffirmed its Buy rating on Enviri Corp. (NYSE:NVRI) stock with a steady price target of $13.00. The endorsement comes after Enviri announced its three-year annual growth targets on Thursday, June 20, 2024, which include mid-single digit revenue growth and 10%-12% increases in adjusted EBITDA. Additionally, the company has set a goal to reduce its leverage to 2.5 times.
The firm's analysts attended Enviri's analyst day in Philadelphia, where the company outlined the strategies to achieve its 2027 objectives. The event's primary focus was on the growth potential of Enviri's Clean Earth (CE) business, particularly in capitalizing on its Treatment, Storage, and Disposal Facilities (TSDF) network to meet the growing demand for industrial waste recycling and reuse solutions.
The analyst from Stifel highlighted the perceived undervaluation of Enviri in the market, noting a "clear disconnect" between its current market valuation and the potential for future value creation, especially within the Clean Earth business segment. The firm suggests that as Enviri meets its fiscal year 2024 guidance, it will likely increase market confidence in the company's ability to reach its targets for the year 2027.
Enviri's strategic plan and the confidence expressed by Stifel suggest a positive outlook for the company's future performance. The firm's analysis indicates that there is an attractive upside to Enviri's valuation if the company can deliver on its guidance and growth targets in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.