E-Infrastructure Reliance Will Erode Future Margins

Analysts have raised their price target for Sterling Infrastructure from $390 to approximately $453, citing stronger revenue growth and improving profit margins. This increased confidence is attributed to the company’s strategic evolution and expanding project backlog.

Analysts have increased their fair value estimate for Sterling Infrastructure from $355 to $390 per share. They cite a stronger outlook for revenue growth and profit margins as the company capitalizes on its expanding backlog and diversified infrastructure services.

Sterling Infrastructure's consensus price target has increased from $313 to $355, reflecting raised earnings estimates and forward guidance, as well as anticipated growth and strategic value from the CEC Facilities Group acquisition. Analyst Commentary Q2 earnings beat and raised forward guidance prompted upward revisions to valuation assumptions.

With no changes observed in either the discount rate or net profit margin, Sterling Infrastructure’s consensus analyst price target remains steady at $313.00. What's in the News Raised full-year guidance, expecting revenue of $2.10–$2.15 billion, net income of $243–$252 million, and diluted EPS of $7.87–$8.13.

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.

AnalystConsensusTarget has decreased revenue growth from 1.4% to 0.6% and increased future PE multiple from 27.8x to 31.6x.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has decreased revenue growth from 4.5% to 1.4% and increased profit margin from 10.4% to 11.6%.