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Investing.com - Jefferies initiated coverage on Acuren Corp. (NYSE:TIC) with a Buy rating and a $16.00 price target on Thursday, representing a potential 51% upside from the current price of $10.60. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $11 to $17.
The research firm cited Acuren’s potential to expand EBITDA margins by approximately 200 basis points to 18% by 2027, driven by cost synergies from the NV5 acquisition, operating leverage, and strategic business improvements. The company’s current EBITDA stands at $82.78 million, with a relatively high EV/EBITDA multiple of 34x.
Jefferies views the $20 million NV5 cost synergy target as conservative, noting opportunities from eliminating duplicative administrative expenses and optimizing sourcing and procurement processes.
The firm expects additional margin expansion through cross-selling higher-margin services, eliminating low-margin contracts, and leveraging NV5’s offerings in areas such as Geospatial and Infrastructure.
Jefferies believes Acuren can achieve 20%+ EBITDA margins long-term through improved pricing strategies and scale benefits from continued industry consolidation, while requiring minimal SG&A investment to support growth.
In other recent news, Acuren Corp reported its Q2 2025 earnings, revealing a 1.5% year-over-year increase in service revenues, reaching $313.9 million. The company also announced a strategic acquisition of NV5 for $1.7 billion. Despite these developments, Acuren’s adjusted EBITDA decreased to $54.6 million from $59.1 million the previous year, with the EBITDA margin declining from 19.1% to 17.4%. The acquisition is part of Acuren’s ongoing strategy to expand its service offerings and market presence. Analyst firms have not yet provided updates on their ratings following these announcements. Investors are closely monitoring how the acquisition and recent earnings will impact Acuren’s financial performance in the upcoming quarters. These recent developments highlight Acuren’s active approach to growth and adaptation in the market.
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