William Blair analyst Louie DiPalma has maintained their bullish stance on STRL stock, giving a Buy rating on February 3.
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Louie DiPalma has given his Buy rating due to a combination of factors that underscore Sterling Infrastructure’s attractive positioning in the fast-growing data center market. The significantly elevated capital spending plans announced by major hyperscalers like Google and Meta for 2026, far surpassing prior market expectations, signal a sustained wave of investment in digital infrastructure. DiPalma expects overall capex growth from the top cloud providers in 2026 to roughly mirror the strong expansion seen in 2025, providing a favorable demand backdrop for Sterling’s e-infrastructure operations.
In addition, recent management commentary and investor meetings highlighted that demand for data centers and related electrical services remains very strong, which is already evident in Sterling’s results, where data center revenue is growing at well over 100% year-over-year. Despite this momentum, Sterling’s shares trade at a modest discount to a peer group of industrial infrastructure companies focused on data centers, based on 2026 EBITDA multiples. This combination of robust sector tailwinds, demonstrated rapid growth in a key business segment, and a valuation that remains slightly below comparable firms underpins DiPalma’s conviction in maintaining a Buy rating on the stock.
In another report released on February 3, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $395.00 price target.