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Investing.com - Needham raised its price target on CECO Environmental Corp (NASDAQ:CECO) to $52.00 from $44.00 on Thursday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $45.21, have demonstrated remarkable momentum with a 96.57% surge over the past six months. According to InvestingPro data, CECO has earned a "GOOD" financial health rating, with 16 additional ProTips available for subscribers.
The price target increase follows investor meetings at the 14th Annual Needham Virtual Industrial Tech, Robotics & Clean Tech 1x1 Conference earlier this week, which left the research firm more optimistic about potential continued robust order growth at the company.
Needham believes the large pipeline of opportunities across CECO’s business will translate to stronger growth than current market expectations for 2026, based on analysis of CECO’s recent quarterly results and those of peers and customers.
The firm acknowledged potential gross margin variability as CECO wins a greater share of large Industrial Air and Industrial Water projects, but sees a path to stronger adjusted EBITDA and improved adjusted EBITDA margins in 2026 and 2027.
CECO Environmental provides environmental technology solutions for industrial air, industrial water and energy transition markets worldwide.
In other recent news, CECO Environmental Corp reported second-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings per share of $0.24, surpassing the anticipated $0.18 by 33%. Additionally, CECO’s revenue reached $185.4 million, exceeding the consensus estimate of $178.66 million and marking a 35% year-over-year increase. Following these strong financial results, H.C. Wainwright raised its price target for CECO Environmental to $55 from $33, maintaining a Buy rating. The firm highlighted the company’s diversified revenue base, strong market conditions, and effective mergers and acquisitions as factors supporting its optimistic outlook. These developments reflect CECO’s continued financial strength and forward momentum.
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