Comfort Systems USA stock price target raised to $630 from $465 at DA Davidson

Investing.com - DA Davidson has raised its price target on Comfort Systems USA (NYSE:FIX) to $630 from $465 while maintaining a Buy rating on the stock. The company, which has achieved a perfect Piotroski Score of 9 according to InvestingPro data, has demonstrated remarkable performance with a 76.61% return over the past year.

The firm cited continued business momentum in both execution and new business awards that likely supports upside to forecasts over the near and medium term.

DA Davidson expressed increasing confidence that recent macroeconomic factors, including tariffs, are having limited impact on the company’s performance thus far.

The research firm expects Comfort Systems’ elevated levels of cash flow to correspond with higher earnings, with responsible allocation of excess cash beyond organic investments, including selective M&A and returns to shareholders.

The new price target represents 21 times DA Davidson’s 2025 EBITDA estimates and 20 times its 2026 EBITDA estimates for the company.

In other recent news, Comfort Systems USA has been the subject of several analyst reports highlighting its financial performance and strategic positioning. UBS has reiterated its Buy rating for the company, raising the price target to $545, citing strong prospects in datacenter construction and the company’s ability to maintain high margins. UBS also noted the company’s significant earnings growth, which has resulted in robust free cash flow, enabling strategic mergers and acquisitions along with share repurchase programs. Meanwhile, Stifel also raised its price target for Comfort Systems USA to $512, maintaining a Buy rating and expressing confidence in the company’s strategic position to benefit from industry trends such as skilled labor shortages and increased investments in data centers. Both UBS and Stifel have acknowledged the company’s potential for generating substantial free cash flow, with expectations of increased emphasis on share buybacks over time.

UBS analyst Joshua Chan highlighted the company’s positive outlook on demand, with expectations of high single-digit organic growth in 2025 and improved visibility into 2026. The demand for modular and datacenter construction is strong, with bookings extending into 2027, driven by hyperscale data center operators. Analysts have pointed out the company’s effective execution of business strategies as a key factor in its favorable margin outlook. Despite macroeconomic concerns, analysts believe Comfort Systems USA is well-positioned to capitalize on current industry trends and continue its growth trajectory. These recent developments underscore the company’s strong market presence and strategic initiatives that are expected to deliver value to its shareholders.

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