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Investing.com - DA Davidson raised its price target on Comfort Systems USA (NYSE:FIX) to $810 from $630 on Monday, maintaining a Buy rating following the company’s strong second-quarter performance. The stock, currently trading near its 52-week high of $699.39, appears overvalued according to InvestingPro Fair Value metrics.
The firm cited outstanding quarterly results that featured strong organic growth, margin expansion, and solid bookings. With impressive revenue growth of 26.33% and a perfect Piotroski Score of 9 according to InvestingPro data, DA Davidson noted the company demonstrated clear visibility into future performance based on customer discussions extending into subsequent years.
Despite acknowledging a significant recent move in the share price, DA Davidson emphasized that the fundamental strength in Comfort Systems’ business cannot be denied, with potential upside still remaining.
The analyst highlighted favorable trade labor leverage amid unique demand drivers as a key factor supporting the company’s performance. These elements complement Comfort Systems’ impressive financial returns and future cash flow potential.
DA Davidson concluded that these factors justify the stock’s current multiple, reinforcing its decision to maintain a Buy rating while substantially increasing the price target.
In other recent news, Comfort Systems USA reported strong financial results for the second quarter of 2025, significantly surpassing earnings forecasts. The company’s earnings per share reached $6.53, exceeding the anticipated $4.84, resulting in a 34.92% surprise. Revenue also outperformed expectations, reaching $2.17 billion compared to the forecasted $1.97 billion. UBS responded to these results by raising its price target for Comfort Systems USA to $710 from $545, maintaining a Buy rating on the stock. The company achieved impressive organic growth of 19% in the quarter, significantly outpacing UBS’s estimate of 8%. DA Davidson also reiterated its Buy rating, maintaining a price target of $630, noting the company’s strong second-quarter performance and a book-to-bill ratio of 1.6x, indicating robust future revenue potential. These developments highlight a period of substantial growth and positive analyst sentiment for Comfort Systems USA.
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