Barclays Maintains Overweight Rating on APi Group, Raises Price Target to $42.00

Barclays analyst Julian Mitchell maintains an "Overweight" rating on APi Group (APG) and raises the price target from $40.00 to $42.00, a 5.00% increase. APG operates in two segments: Safety Services and Specialty Services, providing integrated occupancy systems and infrastructure services. Based on 10 analysts' one-year price targets, the average target price is $41.58, representing a 16.99% upside from the current price of $35.54. The average brokerage recommendation is 1.6, indicating "Outperform" status. The estimated GF Value for APG in one year is $22.70, suggesting a downside of 36.13% from the current price.

Barclays analyst Julian Mitchell has maintained an "Overweight" rating on APi Group (APG) and raised the price target from $40.00 to $42.00, a 5.00% increase. This move comes after APG reported strong financial results for the second quarter of 2025. The company's revenue growth accelerated to +15% year-over-year (y/y), up from +7% in the previous quarter. Organic growth was robust at +8% y/y, with the Safety Services segment growing by +5.6% y/y, and the Specialty Services segment seeing +13% organic growth [2].

APi Group operates in two segments: Safety Services and Specialty Services. The Safety Services segment, which accounts for about 75% of revenues, offers mission-critical services such as fire sprinklers, alarm systems, and remote monitoring. The Specialty Services segment provides construction, installation, and servicing for infrastructure and utilities, as well as HVAC services. The company's model of leading with inspections first has proven to be effective, generating $3-4 in service revenue per dollar of inspections [2].

Mitchell's price target increase is supported by APi Group's strong performance and the company's disciplined approach to acquisitions. The company completed six acquisitions this quarter, including its second acquisition for its elevator business, and is on track to deploy $250mn into acquisitions this year. APi Group has also increased its credit facility to $750mn from $500mn, indicating a strong financial position [2].

Based on the analysis of 10 analysts, the average one-year price target for APG is $41.58, representing a 16.99% upside from the current price of $35.54. The average brokerage recommendation is 1.6, indicating an "Outperform" status. The estimated GF Value for APG in one year is $22.70, suggesting a downside of 36.13% from the current price [1].

References:
[1] https://www.speedwellmemos.com/p/api-group-2q25-business-update
[2] https://www.speedwellmemos.com/p/api-group-2q25-business-update