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Investing.com - Stifel raised its price target on Everus (NYSE:ECG) to $83.00 from $71.00 on Friday, while maintaining a Buy rating on the stock. The stock, currently trading at $67.34 with a market capitalization of $3.43 billion, appears overvalued according to InvestingPro Fair Value metrics.
The investment firm cited Everus’s significant exposure to "inside" electrical and mechanical work, positioning the company to benefit from growing data center construction activity.
Stifel noted that Everus’s recent spin-off likely accelerates both organic investment and merger and acquisition activity, which could enhance growth in the company’s core data center markets.
The firm also pointed to Everus’s newfound free cash flow access as a potential driver for upside to the company’s long-term financial targets.
Stifel highlighted that Everus maintains an elevated backlog, providing visibility into the company’s performance over the next couple of years.
In other recent news, Everus Construction Group Inc. reported a strong performance for the first quarter of 2025, with earnings per share (EPS) of $0.72, surpassing market expectations. The company achieved a revenue of $826.6 million, marking a 32% year-over-year increase. This growth was driven by a 47% rise in revenue from the Engineering and Manufacturing (E&M) sector, despite a 2% decline in the Transmission and Distribution (T&D) segment due to weather-related impacts. Stifel analysts responded by raising their price target for Everus to $70, maintaining a Buy rating on the stock. The company also reported a significant 41% increase in its total backlog compared to the previous year, highlighting a robust pipeline for future revenue.
Everus has reaffirmed its financial guidance for 2025, projecting revenues between $3.0 to $3.1 billion and EBITDA between $210 to $225 million. The company is aiming for a 5-7% organic revenue growth and a 7-9% EBITDA growth compound annual growth rate (CAGR), supported by strategic investments and favorable market conditions. Additionally, Everus has addressed concerns regarding cost pressures from tariffs, ensuring investors of their management strategies to mitigate potential impacts. The company’s strategic expansion, including the acquisition of a new prefabrication facility, positions it well for continued growth in key markets such as data centers and semiconductor manufacturing.
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