Truist Securities has increased its price target for The Brink's Company to $163.00 from $138.00 while maintaining a Buy recommendation on the security services firm. The revised target sits above the stock's most recent quote of $130.37 and follows a 42.33% total return for the past year, as shown by InvestingPro data.
The brokerage firm identified expected free cash flow growth of more than 10% as a central driver for potential multiple expansion for Brink's shares. That outlook is set against the company's reported free cash flow yield of 8% over the last twelve months, according to InvestingPro analytics.
Truist highlighted an operational mix-shift in Brink's profit and loss toward the AMS/DRS segment - described by the firm as both faster growing and higher margin - as a second key element supporting upside. The research house projects a 13% compound annual growth rate in AMS/DRS segment revenue through 2030 and anticipates a 12% total company free cash flow CAGR across the same period. Truist notes that broadening incentive compensation arrangements tied to segment growth will be a contributing factor to these forecasts.
Recent company results provide some backing for these projections, with revenue up 3.07% over the prior twelve months. Truist also flagged deleveraging and improving free cash flow conversion as additional supports for its more bullish view on valuation.
Under Truist's modeling, the $163 price target corresponds to an 8.6x multiple on the firm's 2027 estimates for Brink's. Supplementary analysis from InvestingPro states the stock appears undervalued on a Fair Value basis, and additional ProTips indicate management has been active in repurchasing shares and that net income is expected to rise this year.
Capital return initiatives announced by Brink's were also summarized in the research notes. The company declared a regular quarterly dividend of $0.255 per share on common stock, payable on March 2, 2026 to shareholders of record as of February 2, 2026. In parallel, Brink's authorized a new $750 million share repurchase program that will run through December 31, 2027. Truist noted this repurchase authority represents more than 15% of the company's current market capitalization and supplements an outstanding $500 million authorization that expires at the end of 2025.
Truist reiterated that there may be longer-term value tied to Brink's historical operations in Venezuela. The firm referenced 2013 data indicating Venezuela contributed about $450 million in revenue, representing roughly 11% of Brink's total revenue in that year, and generated over $110 million in EBITDA, per Truist's note.
Implications and context
The upgrade in price target and the maintained Buy rating rest on a combination of projected cash flow acceleration, an advantaged shift in business mix toward AMS/DRS, stronger FCF conversion and ongoing capital returns. Together, these elements form Truist's case for multiple expansion and justify the updated valuation framework.
Investors assessing Brink's will see the new target as validation of the company's operational and capital allocation trajectory, while the dividend and expanded repurchase program underscore management's emphasis on returning capital to shareholders.
Data points cited
- New Truist price target: $163.00 (previously $138.00)
- Recent stock price referenced: $130.37
- One-year return: 42.33% (InvestingPro)
- Free cash flow yield: 8% LTM (InvestingPro)
- Revenue growth: 3.07% over the last twelve months
- Truist growth assumptions: 13% AMS/DRS segment revenue CAGR to 2030; 12% company FCF CAGR to 2030
- Price target multiple: 8.6x on Truist's 2027 estimates
- Quarterly dividend: $0.255 per share, payable March 2, 2026; record date February 2, 2026
- New share repurchase authorization: $750 million through December 31, 2027 (more than 15% of current market cap)
- Existing repurchase authorization: $500 million, expiring end of 2025
- Historical Venezuela contribution cited by Truist: roughly $450 million in revenue and over $110 million in EBITDA in 2013
How Truist frames the case
Truist frames its bullish view around several quantifiable drivers - accelerating free cash flow, margin-accretive mix-shift into AMS/DRS, mandated incentive compensation tied to growth, and capital return programs that reduce outstanding share count. The firm points to deleveraging and better FCF conversion as additional supports for a higher valuation multiple.