Stifel raises Comfort Systems USA stock price target to $746 on strong growth

Published 28/07/2025, 18:50
Stifel raises Comfort Systems USA stock price target to $746 on strong growth

Investing.com - Stifel raised its price target on Comfort Systems USA (NYSE:FIX) to $746.00 from $581.00 on Monday, while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering a 123% return over the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The mechanical systems company reported second-quarter revenue that exceeded expectations, showing a 20% year-over-year increase, with 18.5% coming from organic growth and 1.5% from acquisitions. This performance aligns with the company’s strong financial health, earning a "GREAT" rating and perfect Piotroski Score of 9 on InvestingPro, which offers 18 additional valuable insights about FIX.

Technology end markets, primarily data centers, drove significant growth for the company, increasing 66% year-over-year and accounting for 43% of total sales, while modular revenue grew 5% year-over-year against a difficult comparison period.

Comfort Systems is expanding its modular capacity, which currently stands at over 2.7 million square feet and is expected to reach approximately 3 million square feet by early 2026, up from about 2.2 million in late 2024 and over 2.5 million at the end of the first quarter of 2025.

The company now expects 2025 same-store revenue to increase in the mid-teens, up from its previous high-single-digit growth forecast, and acquired Right Way Plumbing & Mechanical in early May, a purchase expected to add approximately $60-70 million in annual revenue.

In other recent news, Comfort Systems USA reported strong financial results for the second quarter of 2025, significantly exceeding earnings forecasts. The company’s earnings per share reached $6.53, surpassing the anticipated $4.84, while revenue hit $2.17 billion, outpacing the forecast of $1.97 billion. Following these results, DA Davidson raised its price target for Comfort Systems USA to $810 from $630, maintaining a Buy rating and highlighting the company’s strong organic growth and margin expansion. UBS also increased its price target to $710 from $545, citing impressive organic growth of 19% and significant EBITDA margin expansion. DA Davidson reiterated a Buy rating with a price target of $630, noting the company’s robust book-to-bill ratio of 1.6x, indicating strong future revenue potential. These recent developments reflect Comfort Systems USA’s solid performance and positive outlook as noted by analysts.

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