Analyst Adam Bubes of Goldman Sachs maintained a Buy rating on Legence Corp. Class A, retaining the price target of $46.00.
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Adam Bubes has given his Buy rating due to a combination of factors that highlight Legence Corp.’s strategic positioning and growth potential. The company has successfully expanded its project scope in data centers, which is a rapidly growing sector, and continues to pursue mergers and acquisitions to enhance its market presence. This strategic expansion has transformed Legence from a specialized mechanical contracting firm into a comprehensive life cycle provider for facilities, particularly in high-tech industries.
Legence’s competitive advantage lies in its vertically integrated offerings, providing a unique one-stop solution for Mechanical, Electrical, and Plumbing (MEP) systems by combining engineering, consulting, installation, and maintenance services. This integration sets Legence apart from its competitors, who typically focus on either engineering or maintenance. The company’s ability to capture a significant portion of revenue from clients utilizing both service segments, which has increased from 19% in 2021 to 25%, further underscores its growing market influence and potential for future revenue growth.
Bubes covers the Industrials sector, focusing on stocks such as Legence Corp. Class A, Casella Waste, and Waste Management. According to TipRanks, Bubes has an average return of 21.2% and a 75.00% success rate on recommended stocks.
In another report released on November 21, Tigress Financial also initiated coverage with a Buy rating on the stock with a $54.00 price target.