Update shared on 21 Nov 2025
Fair value Increased 16%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.
Analyst Commentary
Bullish and bearish analysts have weighed in on Sterling Infrastructure, providing a range of perspectives regarding the company's recent performance and outlook. Their notes highlight several strengths and ongoing considerations as the business navigates its next phase of growth.
Bullish Takeaways- Sterling Infrastructure has demonstrated strong execution, evolving from a low-margin contractor into a diversified infrastructure provider through strategic acquisitions and organic investments.
- The company achieved an impressive 18% compound annual revenue growth and a 42% EPS growth from 2019 to 2024, supporting upward momentum in valuation.
- An expanding backlog, especially in the e-infrastructure segment, positions Sterling well to capitalize on rising demand for mission-critical projects such as data centers and advanced manufacturing facilities.
- Cautious analysts point to the recent price surge as potentially outpacing short-term fundamentals. This supports a more neutral view on current valuation.
- Near-term growth may rely heavily on maintaining a robust backlog and successful integration of recent acquisitions. These factors could present execution risks.
- As Sterling broadens its portfolio, sustaining above-market growth rates may become more difficult, particularly if sector-wide investment slows.
What's in the News
- Sterling Infrastructure has been added to the S&P 400 index and removed from the S&P 600, reflecting its growth and changing market stature (Key Developments).
- The company announced a new share repurchase program, authorizing up to $400 million in buybacks over the next 24 months (Key Developments).
- Sterling Infrastructure raised its full-year 2025 earnings guidance. The company now projects revenue between $2.375 billion and $2.390 billion, net income of $270 million to $275 million, and diluted EPS of $8.73 to $8.87 (Key Developments).
- Recent buyback activity includes the completion of repurchasing 961,000 shares for $119.08 million under a previous buyback program announced in December 2023 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $390 to $453, marking a significant upward revision.
- Discount Rate has risen slightly from 8.29% to 8.48%, reflecting a modest adjustment in perceived risk.
- Revenue Growth estimates have increased from 13.92% to 16.23%, indicating higher expected sales expansion.
- Net Profit Margin projections have improved marginally, from 12.74% to 12.96%.
- Future P/E ratio is now estimated at 39.5x compared to the previous 34.2x, suggesting a higher valuation relative to earnings.
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.