CECO Industries: Premium-Valued Growth Story with Strengthening Backlog, Expanding Margins, and Upside to 2027

Ceco Environmental, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Bobby Brooks from Northland Securities maintained a Buy rating on the stock and has a $73.00 price target.

Bobby Brooks has given his Buy rating due to a combination of factors that point to continued strong growth and profitability for CECO. He projects solid double-digit revenue expansion through 2027, supported by a rising backlog, consistent execution, and favorable industry dynamics such as increasing power generation needs, tighter emissions standards, and re-shoring trends. Brooks also expects meaningful margin improvement driven by operating leverage, with selling, general, and administrative expenses declining as a percentage of revenue and adjusted EBITDA margins rising steadily over the next several years. In addition, he anticipates robust free cash flow generation, aided by the company remaining in a maintenance-level capital spending mode.

Brooks’s valuation work further supports the Buy rating, as he bases his new $73 price target on his 2027 adjusted EBITDA forecast, which is currently above Street consensus. He maintains a premium valuation multiple relative to peers, arguing that CECO’s superior execution, sizable backlog, and strong pipeline of opportunities justify this higher rating. The recent announcement of a record $135 million order, which pushes expected 2025 orders above $1 billion and extends a multi-quarter streak of elevated order activity, reinforces his confidence in the company’s growth trajectory. Taken together, these drivers underpin his view that CECO’s shares remain attractive and have meaningful upside potential.

Brooks covers the Industrials sector, focusing on stocks such as Graham, Tetra Technologies, and Ceco Environmental. According to TipRanks, Brooks has an average return of 41.6% and a 71.20% success rate on recommended stocks.