U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
On Wednesday, Stifel analysts revised their price target for Everus (NYSE:ECG) shares, reducing it to $55.00 from the previous $67.00, while reaffirming a Buy rating on the company's stock. The stock currently trades at $35.07, with a market capitalization of $1.79 billion. According to InvestingPro data, the company appears fairly valued based on its proprietary Fair Value model. The adjustment follows a comprehensive survey conducted by the analysts, which they believe underpins the positive outlook for Everus' Transmission and Distribution (T&D) segment.
The company is seen to have experienced a short-term gain from cleanup operations related to the Los Angeles wildfires. Stifel's analysts project that the aftermath of these wildfires could lead to increased activities in undergrounding, which involves moving overhead cables to an underground structure, potentially benefiting Everus over a longer period.
However, there is a note of caution regarding the utility's capital expenditure in the region, as there remains uncertainty about the origin of the wildfires. California is highlighted as a crucial state for Everus in terms of T&D operations, indicating the importance of the region to the company's business.
The Stifel team's outlook remains optimistic despite the lowered price target, suggesting that the firm sees fundamental value in Everus' operations and market position. The Buy rating indicates that, in their view, Everus' stock still represents a potentially good investment despite the challenges posed by the recent wildfires and the ongoing uncertainty they have caused.
In other recent news, Everus has received attention from analysts with updates on its stock ratings and company strategies. Stifel has maintained a Buy rating on Everus with a price target of $67, following discussions with the company's CEO and CFO. These discussions highlighted Everus's strategic focus on data center construction and its ability to manage rising material costs through a mix of project types. The company's backlog has grown by 38% year-over-year, signaling a strong business pipeline despite uncertainties in the non-residential construction sector.
Meanwhile, Oppenheimer has reaffirmed an Outperform rating for Everus, setting a price target of $60. The firm noted that Everus has not seen a slowdown in its data center activities, despite a sequential decline in backlog due to a shift towards larger contracts. This transition is expected to result in a 38% increase in backlog but a 40% decline in non-backlog business. Everus is also looking to expand its Transmission and Distribution exposure, aiming for higher margins and more predictable work. Both Stifel and Oppenheimer express confidence in Everus's long-term growth prospects and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.