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Investing.com - UBS raised its price target on Comfort Systems USA (NYSE:FIX) to $710.00 from $545.00 on Friday, while maintaining a Buy rating on the stock following the company’s second-quarter results. The stock, currently trading near its 52-week high of $699.39, has delivered an impressive year-to-date return of 63%.
The mechanical services provider reported impressive organic growth of 19% in the quarter, significantly outpacing UBS’s estimate of 8%. The company also achieved strong EBITDA margin expansion of 310 basis points year-over-year, compared to UBS’s forecast of 80 basis points. According to InvestingPro data, the company’s overall revenue growth stands at 26.3% over the last twelve months, with a perfect Piotroski Score of 9, indicating excellent financial strength.
Comfort Systems’ backlog reached $8.1 billion, surpassing expectations and accelerating from the first-quarter level of $6.9 billion, which UBS noted was against typical seasonality. This backlog growth suggests a robust project environment for the company into the foreseeable future.
UBS highlighted that the expanded backlog provides increasing visibility through the second half of 2025 and into 2026, prompting the firm to raise its estimates "materially" for the company.
The investment bank cited three key factors supporting its Buy rating: the strong demand backdrop, Comfort Systems’ value proposition as a skilled trades labor provider in a constrained environment, and the company’s strong execution. InvestingPro analysis reveals the company maintains excellent financial health with strong cash flows and profitability metrics. Subscribers can access over 20 additional ProTips and a comprehensive Pro Research Report for deeper insights into FIX’s performance and outlook.
In other recent news, Comfort Systems USA reported impressive financial results for the second quarter of 2025, significantly surpassing earnings forecasts. The company’s earnings per share reached $6.53, exceeding the anticipated $4.84, resulting in a 34.92% surprise. Revenue also outperformed expectations, totaling $2.17 billion compared to the forecasted $1.97 billion. DA Davidson maintained its Buy rating on Comfort Systems USA, setting a price target of $630 following the company’s strong quarterly performance. The firm highlighted a book-to-bill ratio of 1.6x, suggesting robust future revenue potential. These developments reflect positively on the company’s financial health and growth prospects.
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