Should you sell your Element Fleet Management stock?

TD Cowen analyst Graham Ryding lowered his price target on Element Fleet Management (Element Fleet Management Stock Quote, Chart, News, Analysts, Financials TSX:EFN) to $41.00 from $42.00 on February 25, while maintaining a “Buy” rating.

As reported by the Globe and Mail, the average Street target is $42.50.

Element Fleet Management is an automotive fleet management company headquartered in Toronto, Ontario, with major operations in North America, Australia, and New Zealand.

Ryding said fourth-quarter 2025 results were modestly below both his estimates and consensus expectations.

“Q4/25 results were modestly below us and consensus,” he said. “While guidance for 2026 is constructive on an absolute basis, consensus may come down slightly as a result. Originations were softer than expected, while VUM growth is well-received. Our estimates have been revised modestly (generally in line with midpoints of guidance).”

On February 24, Element reported financial and operating results for the fourth quarter and full year ended Dec. 31, 2025.

The company recorded $70.0-million in one-time costs in 2025, including $52.0-million related to an intangible asset impairment, $9.0-million tied to the Car IQ acquisition and $2.0-million in property-related impairment charges in Q4.

Additional costs were incurred in connection with new funding structures aimed at optimizing leverage and expanding funding capabilities.

Element presents adjusted results as non-GAAP measures, which it said provide investors with useful insight into performance and operations.

CEO Laura Dottori-Attanasio said the company delivered consistent growth in 2025 while advancing its technology platform.

“Element’s performance in 2025 reflects consistent growth across the business and the continued execution of our strategy,” she said. “We saw strong client engagement across our markets and made meaningful progress advancing our technology platform capabilities, including the acquisition of Car IQ, while maintaining focus on both near-term results and long-term objectives.”

-30-