Centuri Holdings, Inc.: Sell Rating Amid Execution and Liquidity Concerns

In a report released yesterday, Sherif El-Sabbahy from Bank of America Securities reiterated a Sell rating on Centuri Holdings, Inc. (CTRI – Research Report), with a price target of $16.50.

Sherif El-Sabbahy has given his Sell rating due to a combination of factors impacting Centuri Holdings, Inc. Despite the company’s strong bookings and an increase in backlog, the mixed results in the first quarter, particularly the EBITDA miss due to adverse weather conditions, have raised concerns. The company’s strategic review is ongoing, with plans expected to be announced later in the year, but there are still significant risks related to execution, leverage, and liquidity.
Additionally, the delay in the earnings release has sparked worries about the company’s internal processes, further contributing to investor unease. The valuation of Centuri remains at a discount compared to its peers, reflecting the near-term challenges and execution risks. El-Sabbahy maintains a price objective of $16.50, which is below the current trading price, reinforcing the Underperform rating.

CTRI’s price has also changed slightly for the past six months – from $20.630 to $19.530, which is a -5.33% drop .