Scotiabank maintains Sector Outperform rating on FirstService, $175 price target

BMO Capital reduced its price target for FirstService Corp (FSV) to $179 from $192, citing sector valuation pressure. The stock is down 24% from its 52-week high. FirstService reported in-line Q3 2026 results, with FSB organic growth at 3%. Analysts highlight solid backlog and consistent growth, but note headwinds in Roofing and Home Services. The company has raised its dividend for 11 consecutive years. Recent earnings beat expectations, with adjusted EPS of $1.89 and revenue of $1.53 billion.

Scotiabank raised its price target for FirstService Corp (FSV) to $175 from $170, citing 2027 growth outlook. The stock trades at $143.97, near InvestingPro’s Fair Value estimate. Q3 results met expectations, with organic growth expected in 2027 but earnings may be limited by higher interest costs. FSV trades at 13x 2027 EV/EBITDA, below its historical average of 18x. The company has raised dividends for 11 consecutive years.

Raymond James maintained an Outperform rating and $190 price target for FirstService Corp (FSV) after its Q3 2026 results. The firm cited organic growth exceeding expectations and improving demand. FSV shares rose 8% despite market decline. The company reported adjusted earnings of $1.89 per share, beating estimates, and revenue of $1.53 billion, also surpassing forecasts.

FirstService Corp (FSV) reported Q3 2026 revenue growth but faced margin compression in its Brands division, with roofing revenues declining 4% due to competitive pricing and weak demand. EBITDA margin declined to 11.1% from 11.4% last year. Leverage increased to 2.4 times due to share buybacks, limiting further repurchases. The company expects Q4 revenues to be flat and margins to remain under pressure, with limited visibility in the roofing business.

FirstService Corporation reported 6% total revenue growth in Q3 2026, with Restoration Brands up 10% and Roofing down 4%. Management expects mid-single-digit growth in Q4, with flat to slightly down roofing growth. The company repurchased 9% of shares since Q2, increasing leverage to 2.4x net debt to EBITDA.

FirstService (FSV) reported Q3 2026 revenues of $1.53B, up 6%, with adjusted EBITDA of $170M, up 3%. Restoration Brands saw 10% revenue growth, while roofing revenues declined 4%. Century Fire grew over 10%. Q4 expectations include mid to high single-digit growth for Restoration Brands and flat to slightly down organic growth for Home Services.