Oppenheimer raises Everus stock price target to $77 on strong fundamentals

Investing.com - Oppenheimer raised its price target on Everus (NYSE:ECG) to $77.00 from $60.00 on Friday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading at $69.20, with analysts’ targets ranging from $60 to $83.

The firm cited solid underlying fundamentals for the construction and infrastructure company, noting that momentum from the first quarter of 2025 continued into the second quarter. Commercial and industrial submarkets, particularly data centers, hospitality, and manufacturing, showed notable strength. The company’s financial health score is rated as "GOOD" by InvestingPro, with revenue growing at nearly 12% over the last twelve months.

Transmission and distribution (T&D) fundamentals remain healthy, driven by grid hardening activity, though unfavorable weather that affected first-quarter performance continued to impact operations in the second quarter.

Oppenheimer lowered its second-quarter 2025 estimates but maintained its full-year projections, expecting weather-impacted jobs to be completed by year-end. The firm’s price target increase reflects tailwinds in the engineering and maintenance (E&M) and T&D segments.

Everus entered the second quarter with a backlog up 41% year-over-year, supporting Oppenheimer’s view that the company’s fiscal year 2025 guidance—which calls for revenue growth of 5-9% and EBITDA growth of 3-10%—is conservative.

In other recent news, Everus Construction Group reported strong first-quarter 2025 financial results, with earnings per share reaching $0.72, exceeding market expectations. The company generated $826.6 million in revenue, marking a 32% increase compared to the previous year. This growth was driven by a 47% increase in the Engineering and Manufacturing sector, particularly from data centers. Following these results, Stifel raised Everus’s stock price target to $70, maintaining a Buy rating, and highlighted the company’s robust backlog growth of 41% year-over-year.

Additionally, Stifel raised Everus’s price target to $83, citing the company’s strategic position in the data center market and the potential benefits from its recent spin-off. The firm noted that Everus’s access to free cash flow could drive long-term financial growth. Everus has also reiterated its 2025 revenue guidance, projecting between $3.0 to $3.1 billion, supported by its strategic investments and market opportunities.

The company’s backlog expansion, particularly in the Electrical and Mechanical segment, indicates a strong pipeline for future revenue. Furthermore, Everus addressed concerns about cost pressures from tariffs, emphasizing its management strategies to mitigate these challenges. These developments reflect Everus’s strategic positioning and operational execution, contributing to investor confidence in its growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.