Legence Corp (LGN) PT Raised to $120 at BTIG

BTIG analyst Gregory Lewis raised the price target on Legence Corp (NASDAQ: LGN) to $120.00 (from $75.00) while maintaining a Buy rating.

The analyst commented: "LGN is trading down ~6% midday following the company's 1Q26 earnings release (BMO) despite EBITDA of ~$118M coming ~24% above consensus of ~$95M. The beat was primarily driven by revenue of ~$1.0B coming in ~11% above consensus of ~$931M, as sales were up ~57% Y-Y (excluding impact from Bowers acquisition). Diving deeper, I&M revenue grew ~74% Y-Y (excluding impact of Bowers), particularly owing to growing demand from data centers & technology customers. Engineering & consulting revenue also rose ~14% Y-Y driven by strong growth in program & project management. We note that gross margins fell ~200bps Q-Q, largely owing to a higher revenue mix coming from I&M (think lower-margin segment). Looking at end markets, data centers & technology continues to grow its share, making up ~59% of the revenue mix in 1Q26 (up from ~49% in 4Q25). Total backlog grew ~46% Q-Q, largely driven by ~63% sequential growth in I&M backlog owing to the Bowers acquisition and strong order intake from the data centers & technology end market. Bottom line: LGN continues to benefit from strong demand across key end markets, and we expect ongoing momentum to result in a long tail for backlog growth. We reiterate our Buy rating and are raising our PT to $120."

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