Bernstein SocGen Group Starts Legence Corp (LGN) at Outperform

Bernstein SocGen Group analyst Chad Dillard initiates coverage on Legence Corp (NASDAQ: LGN) with a Outperform rating and a price target of $38.00.

The analyst comments: "We initiate on Legence (LGN) with an Outperform rating and $38 PT (24% upside). LGN sits at the intersection of two mega themes: 1) the need to build energy-efficient infrastructure and 2) the skilled labor shortage. We estimate this drives an 11% revenue and EBITDA CAGR through ’27, ~200bps faster than peers, which is underappreciated in the current share price. Catching 4 secular tailwinds at once: 1) High exposure to fast-growing end markets - 50% of revenues come from data centers & semis and life science/healthcare. 2) Rising MEP intensity - AI workloads increase data center energy use by ~50%, new drug therapies are requiring higher spec HVAC systems. 3) Rising electricity prices - drive retrofits activity (70% of sales vs. peers’ 45%). 4) Skilled labor shortage - LGN highly efficient delivering ~$45k in EBITDA per employee, slightly above peers."

For an analyst ratings summary and ratings history on Legence Corp click here. For more ratings news on Legence Corp click here.

Shares of Legence Corp closed at $30.57 yesterday.

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