DA Davidson initiated coverage on three infrastructure services companies with Buy ratings, citing improved valuations, rising estimates and a multi-year demand pipeline tied to data centers, semiconductor plants and pharmaceutical investments.
Analyst Kurt Yinger assigned price targets of $2,100 for Comfort Systems USA (FIX), $168 for Everus Construction Group (ECG) and $700 for Sterling Infrastructure (STRL), all based on 18–24 times estimated 2027 EBITDA.
Comfort Systems reported second-quarter revenue of $3.26 billion and orders of $4.9 billion, both ahead of expectations, while Yinger projects organic revenue growth of at least 20% over the next 12–18 months on expanding mechanical and electrical margins. For Everus Construction, Yinger highlighted semiconductor project ramp-ups, data center strength and an upgraded full-year outlook after second-quarter revenue reached $1.23 billion. Sterling Infrastructure posted second-quarter revenue of $1.17 billion and adjusted earnings of $5.80 per share, with Yinger citing integration of the acquired CEC business and a robust backlog of mission-critical projects as key drivers.
The firm’s coverage follows a recent pullback in AI infrastructure trades and reflects expectations that infrastructure services providers will benefit from sustained capital expenditure across AI, manufacturing and life sciences.
