William Blair analyst Tim Mulrooney has maintained their bullish stance on EME stock, giving a Buy rating on October 31.
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Tim Mulrooney has given his Buy rating due to a combination of factors that highlight EMCOR Group’s strong positioning in key growth markets. The company’s management has expressed optimism about the potential for significant growth in AI and cloud data centers, expecting mid-teens growth over the next five years. This growth is driven by a projected compound annual growth rate of 9%-11% in cloud and over 20% in AI, indicating a robust pipeline of opportunities.
Additionally, EMCOR is poised to benefit from secular trends such as reshoring and infrastructure development, which are expected to support high-single to low-double-digit organic growth with attractive margins. The company’s strategic approach to expanding its data center market presence through scaling existing operations, equipping branches to seize new opportunities, and pursuing strategic mergers and acquisitions further solidifies its growth prospects. These factors collectively underpin Mulrooney’s confidence in EMCOR’s long-term performance, justifying the Buy rating.
In another report released on October 31, Robert W. Baird also maintained a Buy rating on the stock with a $713.00 price target.