Legence initiated with a Buy at BofA on growth outpacing the market

As previously reported, BofA initiated coverage of Legence (LGN) with a Buy rating and $35 price target Despite lower scale and higher leverage than larger public peers, the firm expects the provider of mechanical, electrical, and plumbing services to outgrow the market via M&A, the analyst tells investors. While headline construction data is sluggish, Legence is tied to more favorable verticals, such as data centers, the analyst noted. Legence historically grows at a double-digit rate and the firm sees double-digit growth for the next several years, the analyst added.