Analysts have revised Sterling Infrastructure’s price target significantly higher—from $197.67 to $256.33—citing the accretive CEC Facilities Group acquisition, which expands growth opportunities in attractive electrical contracting markets and is expected to drive revenue synergies despite modest margin dilution.
Analyst Commentary
- Bullish analysts expect the CEC Facilities Group acquisition to provide Sterling Infrastructure with access to attractive markets and act as a new growth platform.
- The acquisition positions Sterling favorably in the electrical contracting space, where skilled labor and scaled resources are in high demand.
- While the CEC deal may be slightly dilutive to Sterling’s peer-leading EBITDA margins, analysts believe the company will continue to maintain top tier margins.
- Analysts foresee enhanced revenue opportunities and synergies driven by the integration of CEC’s operations into Sterling’s existing business.
- Ongoing sector dynamics, such as resource constraints and market demand for scaled contractors, further support upward price target revisions.
What's in the News
- Sterling Infrastructure agreed to purchase substantially all assets of CEC Facilities Group, LLC.
- Nicholas Grindstaff appointed as CFO, bringing over 30 years’ experience in finance and infrastructure, succeeding Ron Ballschmiede.
- Full-year 2025 guidance raised: projected revenue $2.05–$2.15 billion, net income $222–$239 million, diluted EPS $7.15–$7.65.
- Completed repurchase of 944,000 shares (3.06% of outstanding) for $114.42 million under the ongoing buyback program.
Valuation Changes
Summary of Valuation Changes for Sterling Infrastructure
- The Consensus Analyst Price Target has significantly risen from $197.67 to $256.33.
- The Consensus Revenue Growth forecasts for Sterling Infrastructure has significantly risen from 0.6% per annum to 5.5% per annum.
- The Future P/E for Sterling Infrastructure has significantly risen from 31.64x to 38.25x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.