William Blair analyst Tim Mulrooney has maintained their bullish stance on APG stock, giving a Buy rating on February 20.
Tim Mulrooney has given his Buy rating due to a combination of factors that suggest a strong future performance for APi Group. Despite a softer-than-expected guidance for the first quarter, with EBITDA falling short of consensus expectations, the outlook for 2025 remains positive. The company is expected to experience a resurgence in organic growth, returning to midsingle-digit levels, alongside improved profitability compared to previous years.
Additionally, the resolution of three significant project delays from 2024, which previously caused investor hesitation, contributes to a more optimistic forecast. The absence of further large project delays and minimal exposure to federally funded projects further strengthens the company’s position. With a robust backlog heading into 2025, APi Group’s shares are anticipated to see over 20% upside in the next year, justifying the Outperform rating.
Mulrooney covers the Industrials sector, focusing on stocks such as APi Group, WillScot Mobile Mini Holdings, and NV5 Holdings. According to TipRanks, Mulrooney has an average return of 11.9% and a 61.11% success rate on recommended stocks.
In another report released on February 20, Barclays also maintained a Buy rating on the stock with a $44.00 price target.