Elevate Service Group is a buy, this analyst says

Beacon Securities analyst Donangelo Volpe initiated coverage of Elevate Service Group (Elevate Service Group Stock Quote, Chart, News, Analysts, Financials TSXV:SERV) with a “Buy” rating and $4.00 target in a May 20 report, saying the facilities management company offers both organic growth and acquisition potential.

Volpe’s target is based on 12x his fiscal 2027 EBITDA forecast.

Elevate provides facilities management services for national retailers, restaurants and commercial and industrial customers across Canada. Its services include plumbing, electrical, lighting, food equipment repair, general maintenance, renovations, grease trap services, data analytics and preventive maintenance.

“Elevate has a two-pronged growth strategy consisting of targeting organic growth opportunities within its existing service offerings and also pursuing an aggressive M&A plan,” Volpe said.

He expects organic growth of more than 10% annually, driven by expanded services, cross-selling and a larger internal technician base. Since going public in November 2025, Elevate has completed six acquisitions.

Volpe said the recent acquisition of TFI Food Equipment Solutions is transformational, lifting pro forma revenue about 80% to roughly $90-million and expanding the technician workforce to 130. He said TFI’s relationships with customers including McDonald’s, Tim Hortons, Circle K, Loblaws, Dairy Queen and KFC create cross-selling opportunities.

Volpe said margin expansion should come from internalizing more technician work, where margins are above 60% versus 15% to 20% for subcontracted work.

“As the company continues to scale both organically and through M&A, we anticipate 70%+ of revenue to be handled through internalized technicians,” he said.

Volpe said Elevate trades at about 7x his fiscal 2027 EBITDA forecast, a 51% discount to peers, and should re-rate as it scales toward more than $15-million in EBITDA.

He expects Elevate to generate Adjusted EBITDA of $9-million on revenue of $77-million in fiscal 2026, improving to $15-million on revenue of $109-million in fiscal 2027.

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