EFN operates as an end-to-end fleet management company primarily in Canada, the United States, Mexico, Australia, and New Zealand. Analysts forecast a 12-month price target in the range of $22.00-$31.00 with an average of $25.69. Their price chart shows a positive trend with YoY performance returns at +10.75%. EFN displays positive growth prospects in both sales and EPS in the low double digits for FY2023 and FY2024. Looking at their balance sheet, ROE remains solid in the low double digits, but they conversely present a higher D/E ratio at nearly 2.7x. EFN is definitely a good quality investment with strong fundamentals and growth, but in regard to being labelled #1 that is likely based off RBC’s internal rankings and initiatives. We believe that EFN can perform well, but their balance sheet does present risks associated with investing in small-cap stocks.
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