William Blair analyst Louie DiPalma has maintained their bullish stance on STRL stock, giving a Buy rating on July 11.
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Louie DiPalma has given his Buy rating due to a combination of factors that position Sterling Construction favorably in the current market environment. A significant driver is the company’s involvement in data center construction, which is expected to benefit from the U.S. government’s AI Action Plan. This plan aims to accelerate the development of data centers, and Sterling’s e-infrastructure business is strategically placed to capitalize on this opportunity, as data center projects constitute a substantial portion of its sales and backlog.
Additionally, Sterling’s recent acquisition of CEC Facilities Group is anticipated to enhance its capabilities in the electrical infrastructure sector, particularly in mission-critical markets like semiconductor manufacturing and data centers. This acquisition is expected to create cross-selling opportunities and increase Sterling’s exposure to high-margin projects. Despite recent market fluctuations, such as the news about SoftBank and OpenAI’s Stargate project, DiPalma views these developments as potential growth avenues for Sterling, especially with its expanding presence in key regions like Texas.
According to TipRanks, DiPalma is an analyst with an average return of -3.1% and a 64.74% success rate. DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Motorola Solutions, and Parsons.
In another report released on July 11, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $254.00 price target.