William Blair analyst Brian Drab has maintained their bullish stance on THR stock, giving a Buy rating yesterday.
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Brian Drab has given his Buy rating due to a combination of factors that highlight Thermon’s improving fundamentals and growth trajectory. The company not only exceeded market expectations on revenue, adjusted EBITDA, and adjusted EPS, but also demonstrated robust demand trends with double-digit gains in both orders and backlog compared with the prior year. He notes that large-project revenue, which had been subdued for an extended period, has now posted significant growth for a second consecutive quarter, underscoring a meaningful recovery in this higher-margin segment.
Drab also emphasizes the favorable industry backdrop supporting Thermon’s outlook. He points to strong momentum in LNG and midstream gas markets, along with a notable upswing in large-project orders, as key drivers of future performance. In addition, he highlights the early stages of what appears to be a sizable investment cycle in the power sector, where Thermon’s opportunity pipeline has expanded considerably. Management’s positive commentary on newer offerings—such as liquid load banks for data centers and medium-voltage electric heaters—further supports the view that the company is well positioned to capture incremental growth, justifying his Buy rating.
In another report released yesterday, TipRanks – Google also reiterated a Buy rating on the stock with a $54.00 price target.