William Blair analyst Louie DiPalma has maintained their bullish stance on STRL stock, giving a Buy rating on March 31.
Louie DiPalma has given his Buy rating due to a combination of factors that highlight Sterling Construction’s strong position in the data center market and potential for growth. The company’s robust pipeline of data center projects and the expectation of continued demand from hyperscalers over the next three to five years provide a solid foundation for future revenue. Additionally, the significant portion of Sterling’s backlog related to data centers, along with the potential $750 million in projects not yet included in the backlog, underscores the company’s growth prospects.
Moreover, Sterling Construction’s strategic focus on mergers and acquisitions further supports the Buy rating. The company is prioritizing acquisitions in the e-infrastructure sector, aiming to expand its geographic reach and enhance its service offerings. By potentially acquiring companies that provide mechanical, electrical, and plumbing services, Sterling could streamline project timelines and improve margins. These strategic initiatives, combined with the company’s confidence in mitigating tariff impacts, suggest a promising outlook for Sterling Construction, justifying the Buy recommendation.
In another report released on March 31, D.A. Davidson also reiterated a Buy rating on the stock with a $185.00 price target.