Jefferies has adjusted its price target for Element Fleet Management Corp. (ELEEF, Financial), reducing it to C$30 from the previous C$31, while maintaining a Hold rating on the stock. This change reflects a recalibrated outlook for the company, with expectations for growth resuming in 2026. The financial advisory firm expressed concerns about continued risks, including the lack of tariff resolutions and potential impacts from domestic political events, which add to the uncertainty surrounding the Canadian financial sector.
Despite the historical resilience of Canadian financial companies during economic downturns, Jefferies highlights that immediate factors such as upcoming elections and possible negotiations are not helping to provide a clear path forward. The firm advises caution, noting that while some risk factors have been accounted for in current valuations, the full extent of potential downside has not yet been fully realized.
In addition to its commentary on Element Fleet, Jefferies has also adjusted its estimates for other major Canadian banks, including CIBC and the National Bank of Canada, signaling a broader reevaluation of the sector under current market conditions.
