Tecnoglass stock price target raised to $95 by DA Davidson

On Friday, DA Davidson maintained a Buy rating on Tecnoglass (NYSE:TGLS) shares and increased the price target to $95 from $90, citing strong bookings and orders that support earnings growth. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.35, with current analysis indicating the stock is trading above its Fair Value. The firm’s analysts pointed out that Tecnoglass’s actions to mitigate tariffs should largely offset cost inflation, contributing to the company’s positive outlook.

The analysts noted that Tecnoglass is trading at a multiple of 14x/12x ’25/’26 EBITDA, which is favorable compared to other building products companies with lower EBITDA margins. Current InvestingPro metrics show an EV/EBITDA of 13.84x and impressive gross profit margins of 43.79%. They highlighted that Tecnoglass’s market share gains and ability to serve resilient demand regions position it to outperform its peers, evidenced by its strong 59.94% return over the past year. Additionally, the company’s superior margin profile is expected to benefit mid-term and long-term valuation. Discover 12 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

Tecnoglass’s first-quarter earnings surpassed expectations, with adjusted earnings per share (EPS) of $0.92, exceeding both DA Davidson’s estimate of $0.83 and the consensus estimate of $0.82. Adjusted EBITDA for the quarter was $70.2 million, a 38% increase year-over-year, closely matching DA Davidson’s estimate of $69.3 million. Gross profit and EBIT grew by 31% and 45% year-over-year, respectively, with a gross margin of 43.9%, up 510 basis points from the previous year.

Revenue increased by 15% year-over-year, with commercial and multifamily segments growing by 11% and single-family residential sales rising by 21%, driven by strong aluminum window demand. The company’s backlog stood at $1.14 billion, marking a 25% increase year-over-year and the 17th consecutive quarter with a book-to-bill ratio above 1.0x. Tecnoglass ended the quarter with a modest net cash position, even after elevated capital expenditures for an asset purchase, and expects cash flow to increase in the coming quarters.

In other recent news, Tecnoglass reported strong fourth-quarter earnings, surpassing analyst expectations. The company achieved adjusted earnings per share of $1.05, exceeding the projected $1.02, and recorded revenue of $239.6 million, slightly above the consensus estimate of $238.44 million. This marks a 23.1% increase year-over-year. Tecnoglass attributed its success to market share gains in the single-family residential sector and growing demand in the multi-family/commercial market. For 2025, the company anticipates revenue between $940 million and $1.02 billion, aligning with analyst expectations of $980 million. The firm’s backlog increased by 27.6% year-over-year to a record $1.1 billion, providing visibility into 2026. DA Davidson maintained a Buy rating on Tecnoglass, with a price target of $90, citing a positive outlook despite a challenging market environment. The firm noted Tecnoglass’s expanding vinyl product offerings and substantial backlog as key growth drivers. Investors will be monitoring Tecnoglass’s ability to capitalize on these strategic initiatives.

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