UBS upgraded Comfort Systems USA (FIX) to Buy from Neutral with a price target of $525, up from $396. The firm expects cyclical tailwinds in manufacturing and datacenters, combined 60% of the company’s revenue, to support continued double-digit organic growth in the next two years. Meanwhile, Comfort Systems should also maintain recent strong EBIT margins of 10%, resulting in 15%-20% earnings growth over the next two years as a base case, with capital deployment being an upside driver, the analyst tells investors in a research note. UBS believes achieving this algorithm can result in a 15%-20% upside to shares over the next year.
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