APi Group’s Analyst Day Takeaways
RBC Capital analysts provided their key takeaways from APi Group Corporation (NYSE:APG) Analyst Day. According to the analysts, the company provided the building blocks to fiscal 2025 targets, focused on branch-level improvements increasing Chubb synergies to over $100 million (from $40mm and $20mm pre-close), where the Chubb deal is approximately $0.20 accretive to fiscal 2022 EPS.
The company outlined its path to fiscal 2025’s 13% EBITDA margin target driven by improved service mix, procurement, savings, and inflation offset, Chubb Value Capture, and systems scale and leverage bridging from the 10.5% base.
The analysts raised their price target to $20 from $18 while reiterating their Sector Perform rating.
| Symbol | Price | %chg |
|---|---|---|
| JSMR.JK | 4330 | 0.23 |
| 02826K.KS | 88500 | -0.9 |
| 028260.KS | 115800 | -1.55 |
| WIKA.JK | 246 | 0.81 |
What to Expect From APi Group Corporation’s Upcoming Q2 Earnings?
RBC Capital analysts released their outlook on APi Group Corporation (NYSE:APG) ahead of the company’s upcoming Q2 results, expecting a modest beat and full-year guidance reiteration.
The analysts expect quarterly revenue to be $1.67 billion, compared to the company’s guidance of $1.65-1.70 billion, and EBITDA of $175 million, compared to the guidance of $170–180 million, both roughly in line with the Street estimates.
For Q2 EPS, the analysts project $0.34, compared to the Street estimate of $0.35.
The analysts noted that the macro slowdown and supply chain disruption could potentially weigh on Safety installation businesses and Specialty services tied to cyclical end markets. Furthermore, FX headwinds could weigh on reported revenues, as approximately 40% of revenues are generated internationally, while higher rates could modesty weigh on interest expense (approximately 50% of debt variable).
