BV - BrightView Holdings Refocuses On Core Values

2024-07-06 10:30:49 ET

Summary

• BrightView pivots strategic positioning to operate as One BrightView, integrating sales and operations at branch level for cross-selling opportunities.
• The company is divesting noncore businesses to reduce costs and improve operating margin, despite expected revenue challenges in the near future.
• I retain the "buy" rating on BV due to stable business conditions, strong project backlog conversion, and undervalued stock compared to peers.

BV Pivots Its Strategic Positioning

I discussed BrightView Holdings (BV) in the past, and you can read the previous article here , published on February 7, 2024. During Q2, the company created opportunities to generate higher returns by operating as One BrightView. Integrating sales and operations at the branch level, it has also allowed for cross-selling opportunities. A strong project backlog conversion should also keep its sales steady. To reduce costs, it is divesting noncore aggregator business. So, I expect the operating margin to expand....

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