William Blair analyst Louie DiPalma has maintained their bullish stance on STRL stock, giving a Buy rating today.
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Louie DiPalma has given his Buy rating due to a combination of factors surrounding Sterling Construction’s strategic acquisition of CEC Facilities. This acquisition is expected to significantly enhance Sterling’s financial performance by adding approximately $134 million in revenue and $17.5 million in adjusted EBITDA for the remaining months of the fiscal year. The integration of CEC Facilities is anticipated to bolster Sterling’s service offerings, particularly in data center electrical services and semiconductor customer relationships, which aligns with the company’s growth strategy.
Furthermore, the acquisition is financed primarily through cash on hand, with a portion in common stock, which indicates a strong financial position and confidence in the anticipated synergies. The expected adjusted EBITDA margin of around 13% from CEC’s contributions is consistent with Sterling’s projections, reinforcing the potential for improved profitability. These factors collectively underpin DiPalma’s positive outlook and the Buy rating on Sterling Construction’s stock.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $311.00 price target.
Based on the recent corporate insider activity of 28 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.