Analyst Joshua Chan of UBS maintained a Buy rating on Comfort Systems, retaining the price target of $875.00.
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Joshua Chan has given his Buy rating due to a combination of factors that highlight Comfort Systems’ promising growth prospects. The company is experiencing strong demand across various sectors, particularly in data centers and industrial verticals like pharmaceuticals and manufacturing. This demand is further supported by the expansion of AI and reshoring activities, which are broadening geographically beyond the South/Southeast to include regions such as Ohio, Arizona, and Utah.
Moreover, Comfort Systems’ construction capacity is largely booked through 2026, with modular capabilities extending into 2027, indicating a solid pipeline of projects. The company is also successfully expanding its modular capacity, which is expected to increase by the end of the year. Despite potential challenges in matching previous order rates, any stock pullback could present an attractive opportunity for investors, given the robust project environment and potential for further margin expansion.