Needham analyst James Ricchiuti has reiterated their bullish stance on CECO stock, giving a Buy rating today.
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James Ricchiuti has given his Buy rating due to a combination of factors that highlight CECO Environmental’s strong performance and promising outlook. The company reported a significant increase in quarterly revenues, surpassing expectations with a 35% rise, including a 15% organic growth, which was above the consensus estimates. This impressive performance was supported by strong gross margins and a notable top-line beat, leading to adjusted EBITDA and EPS exceeding market expectations.
Additionally, CECO achieved another record in bookings, with orders increasing by 95% year-over-year and backlog growing by 14% quarter-over-quarter, setting new records. The robust pipeline and the company’s ability to maintain a book-to-bill ratio greater than 1.2 for the full year, even after raising its 2025 revenue outlook, further reinforce the positive sentiment. The upward revision of revenue estimates for 2025 and 2026, along with the maintained adjusted EBITDA guidance, underscores the confidence in CECO’s continued growth, justifying the Buy rating.
In another report released today, Craig-Hallum also maintained a Buy rating on the stock with a $0.00 price target.