DA Davidson initiated coverage on three infrastructure services companies with Buy ratings, citing improved valuations after a recent pullback in AI infrastructure trades and rising estimates following second-quarter results.
The firm highlighted a robust pipeline of large projects driven by data center construction, semiconductor manufacturing and pharmaceutical investments as key catalysts for the sector. Analyst Kurt Yinger assigned price targets and Buy ratings to Comfort Systems USA, Everus Construction Group and Sterling Infrastructure.
Comfort Systems USA received a Buy rating and a $2,100 price target, based on 24 times estimated 2027 EBITDA. The company is expected to deliver organic revenue growth of 20% or more over the next 12–18 months, supported by expanding mechanical and electrical margins. Second-quarter 2026 revenue reached $3.26 billion, while orders totaled $4.9 billion, exceeding analyst expectations.
Everus Construction Group was initiated with a Buy rating and a $168 price target, valued at 18 times 2027 estimated EBITDA. The company is ramping semiconductor project work with a new customer expected to extend into 2027, alongside data center activity and expansion into the Southeast. Second-quarter revenue rose to $1.23 billion, beating estimates and prompting Freedom Broker to upgrade its rating from Hold to Buy.
Sterling Infrastructure received a Buy rating and a $700 price target, also valued at 18 times 2027 estimated EBITDA. The company is integrating the acquired CEC business to pursue additional electrical and mechanical deals. Second-quarter 2026 revenue increased to $1.17 billion, with adjusted earnings of $5.80 per share, surpassing expectations. Cantor Fitzgerald maintained an Overweight rating but lowered its price target following the results.
