U.S. infrastructure services stocks are drawing renewed attention after DA Davidson initiated coverage on three companies with Buy ratings, citing improved valuations and upward earnings revisions following second-quarter results.
Analyst Kurt Yinger highlighted Comfort Systems USA, Everus Construction Group and Sterling Infrastructure as positioned to benefit from multi-year demand tied to data center construction, semiconductor manufacturing and pharmaceutical investments. The firm’s outlook reflects a correction in AI-related infrastructure valuations that has created entry points for investors.
Comfort Systems received a Buy rating with a price target of $2,100, based on 24 times estimated 2027 EBITDA. The company is expected to deliver organic revenue growth of 20% or more over the next 12 to 18 months, supported by strong order momentum and industry-leading margins. Second-quarter revenue reached $3.26 billion, while quarterly orders totaled $4.9 billion, exceeding analyst expectations.
Everus Construction was assigned a Buy rating with a $168 target, using 18 times projected 2027 EBITDA. The company’s growth is anchored in semiconductor projects, data center expansion and strategic acquisitions that broaden its geographic footprint in the Southeast. Revenue for the quarter climbed to $1.23 billion, surpassing estimates and prompting an upgrade from Freedom Broker from Hold to Buy.
Sterling Infrastructure also received a Buy rating with a $700 target, based on 18 times 2027 EBITDA. The firm’s integration of the acquired CEC business is expected to bolster electrical and mechanical contract backlogs, with second-quarter revenue reported at $1.17 billion and adjusted earnings of $5.80 per share, both above forecasts. Cantor Fitzgerald maintained an above-average rating but trimmed its price target following the results.
