Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - H.C. Wainwright raised its price target on CECO Environmental Corp (NASDAQ:CECO) to $55.00 from $33.00 on Wednesday, while maintaining a Buy rating on the stock. The company’s shares have shown remarkable momentum, surging 19% in the past week and currently trading near its 52-week high of $41.05.
The research firm cited continued strength in CECO’s financial results and forward outlook as key drivers for the significant price target increase. H.C. Wainwright pointed to the company’s diversified revenue base in markets with strong macro tailwinds, margin strength, and accretive M&A activity as factors enabling growth in the sales pipeline and backlog.
CECO management has raised its 2025 revenue guidance to $725-775 million from the previous $700-750 million range, while maintaining its adjusted EBITDA outlook at $90-100 million. The company’s backlog reached approximately $688 million at the end of the second quarter of 2025, representing a 76% year-over-year increase.
H.C. Wainwright has increased its 2026 projections for CECO, now forecasting revenues of $854 million and adjusted EBITDA of $137 million, compared to previous estimates of $786 million and $110 million, respectively.
At the new $55 price target, CECO would trade at 2026 EV/Sales multiple of 2.3x, EV/adjusted EBITDA multiple of 14.4x, and P/E multiple of 31.9x, according to the research firm’s analysis. Currently valued at $1.42 billion, CECO trades at a P/E ratio of 24.25x, with InvestingPro data suggesting the stock is trading above its Fair Value.
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 estimated $0.18 by 33%. Additionally, revenue rose to $185.4 million, beating the consensus estimate of $178.66 million and marking a 35% increase compared to the same period last year. These results led to a positive response from investors, highlighting the company’s strong performance. CECO Environmental also raised its guidance, further contributing to investor optimism. The recent developments indicate a robust quarter for the company. Analysts had anticipated lower figures, making the actual results noteworthy. Such performance metrics are crucial for investors assessing the company’s financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.