Q: What are your thoughts on this latest acquisition and after hitting a 52 week low last week ,and where do you rate this company stock between 1-10 and 10 of course being a table pounder …thanks
5i Research Answer:
It is a big acquisition and solidifies the companies presence in Texas. The deal in addition to some other tuck0in acqusiitons add $425 to $450 mln in revenues. GFL is no stranger to acquisitions like this, so we would expect them to be able to handle integration post-closing. Markets seem to like the deal as well and might help to reverse the negative momentum in the shares but isks are higher now with more leverage and some integration risks.
Given GFL is growing faster in the sector and with the recent drawdown, we think it looks fine here and would probably put it in a '7' range.