Goldman Sachs has reiterated its Sell recommendation on BrightView Holdings with an unchanged price target of $11.10, a level well below the company’s recent trading price of $13.55. The firm’s view comes after BrightView released fiscal first quarter results that combined a revenue beat with notable margin and earnings per share weaknesses.
The landscaping services provider reported top-line revenue of $615 million for the quarter, ahead of the $591.13 million forecast noted in analyst consensus. Goldman Sachs and the market consensus were surprised by the revenue outperformance, but the investment bank emphasized that the upside was narrowly sourced.
Goldman Sachs said the revenue strength was entirely attributable to elevated snow removal activity. The firm linked that boost to higher-than-average snowfall across the Mid-Atlantic, Northeast, and Midwest regions. By contrast, BrightView’s core landscape maintenance revenue showed muted trends, which Goldman Sachs interpreted as evidence of discretionary spending cutbacks and customers reducing scope amid broader macroeconomic uncertainty.
Despite the revenue beat, BrightView’s profitability fell short of expectations. The company reported earnings per share of -$0.01, missing the anticipated $0.02 estimate and representing a 150% negative surprise. This EPS miss coincided with a roughly 5.64% decline in the company’s share price after the earnings announcement; the company’s broader stock movement was not detailed further in the report.
Goldman Sachs also signaled concern about BrightView’s development revenue, which the firm described as under pressure. Factors cited include timing and weather-related delays and a slower-than-expected ramp-up by subcontractors following labor shortfalls associated with immigration reform. Goldman Sachs added that material shortages stemming from tariffs have further constrained the development business.
The firm noted BrightView’s modest scale and stretched valuation metrics. BrightView currently trades at a P/E ratio of 187.5, reflecting annual revenues of $2.69 billion and a thin earnings profile, per the analysis included in the report. Goldman Sachs’ $11.10 target sits well below the $13.55 trading level referenced in the company update.
Separately, InvestingPro’s assessment was mentioned as contrasting with Goldman Sachs’ stance: InvestingPro’s Fair Value calculations suggest the stock may be slightly undervalued. The report did not identify any immediate analyst upgrades or downgrades following the earnings release, and it noted that market participants will likely continue to monitor BrightView’s financial performance in subsequent quarters.
Earnings snapshot
- Revenue: $615 million vs. $591.13 million consensus.
- EPS: -$0.01 vs. $0.02 estimate - a 150% negative surprise.
- Stock reaction: ~5.64% decline after the announcement; additional price movement not provided.