BrightView's stock improving since rocky IPO launch

Financial expert Judah Sokel says the company is nearing the organic revenue and margin profile investors have awaited.

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After its stock dropped roughly 60 percent at the end of 2018, BrightView – which launched its IPO nearly a year ago – is starting to show financial positive progress. The company reported more than $596 million in revenue this last quarter, and though BrightView still ultimately recorded a net income loss of $3.6 million, CEO Andrew Masterman said the company is continually improving its margins by cutting out unprofitable contracts.

"BV’s stock has been challenging to predict since the June 2018 IPO, with disappointing results out of the gate driving large share price declines followed by a large rebound as investors capitalized on the over-reaction, in our view," said Judah Sokel, J.P. Morgan Business & Information Services analyst. "(Second half of fiscal year 2019) should finally display the organic revenue and margin profile that BV investors have been expecting, and we believe the appeal of commercial landscaping’s defensiveness will increase the further we move into the cycle."

To read more analysis from J.P. Morgan, click here.