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Investing.com - UBS raised its price target on Comfort Systems USA (NYSE:FIX) to $875.00 from $710.00 on Monday, while maintaining a Buy rating on the stock. The company has demonstrated exceptional financial health, achieving a perfect Piotroski Score of 9 and delivering impressive year-to-date returns of 78%.
The price target increase follows investor meetings with Comfort Systems USA’s COO Trent McKenna and CAO Julie Shaeff, where management indicated a robust project environment with bookings extending into late 2026 for traditional construction and mid-2027 for modular projects.
UBS noted that visibility might extend even further, as commentary around the bidding pipeline and in-progress construction activity remains strong. The firm believes Comfort Systems is well-positioned to benefit from the strong demand backdrop, particularly given the structural skilled labor shortage in the United States.
While acknowledging that the stock has had a good run and some consolidation might be needed, UBS remains constructive on Comfort Systems USA’s outlook due to likely continued upside to estimates from growth, margins, and mergers and acquisitions activity.
The price target revision represents a 23.2% increase from UBS’s previous target of $710.00 for the heating, ventilation, and air conditioning services provider.
In other recent news, Comfort Systems USA reported a strong second-quarter performance, with revenue increasing by 20% year-over-year. This growth was largely driven by 18.5% organic growth and 1.5% from acquisitions. The company also demonstrated significant EBITDA margin expansion, with a 310 basis point increase compared to the previous year. In addition to these financial results, Comfort Systems USA announced a new $1.1 billion credit facility, arranged by Wells Fargo Bank, which extends its borrowing capacity from the previous $850 million.
Analysts have responded positively to these developments. Stifel raised its price target for Comfort Systems USA to $746, maintaining a Buy rating, while DA Davidson increased its target to $810, also with a Buy rating. UBS similarly adjusted its price target to $710, noting the company’s impressive organic growth and margin expansion. DA Davidson reiterated a price target of $630, highlighting the company’s strong book-to-bill ratio of 1.6x, which suggests robust future revenue potential. These updates reflect the company’s strong financial health and positive outlook as perceived by analysts.
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