William Blair analyst Louie DiPalma has maintained their bullish stance on STRL stock, giving a Buy rating on September 4.
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Louie DiPalma has given his Buy rating due to a combination of factors that highlight Sterling Construction’s promising growth prospects. The potential release of a $550 billion investment fund by the Trump administration is expected to stimulate the development of factories in strategic sectors like semiconductors and pharmaceuticals, which could serve as a significant catalyst for Sterling’s e-infrastructure division. This division has already shown substantial growth, particularly in site development services for data center customers, with an estimated 105% increase in revenue last quarter.
Additionally, Sterling’s recent acquisition of CEC Facilities for $505 million has strengthened its position in the market. CEC’s expertise in electrical infrastructure across critical sectors such as semiconductors adds value to Sterling’s offerings. The stock has also been buoyed by positive macroeconomic indicators in the data center ecosystem, evidenced by Oracle’s increasing backlog and Microsoft’s ambitious expansion plans, further supporting the Buy rating.
In another report released on September 4, D.A. Davidson also maintained a Buy rating on the stock with a $355.00 price target.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STRL in relation to earlier this year.