Roth/MKM Starts Energy Services Of America Corp. (ESOA) at Buy

Roth/MKM analyst Gerry Sweeney initiates coverage on Energy Services Of America Corp. (NASDAQ: ESOA) with a Buy rating and a price target of $20.00.

The analyst comments: “We initiate coverage of ESOA with a Buy rating and $20 PT. ESOA’s diversified end markets allow it to pursue projects that balance risk and revenue. Water & wastewater, electrical & mechanical, and gas transmission each have discrete, multi-year growth opportunities positioning ESOA for multiple years of 7-10% revenue growth, in our opinion. Revenue and gross margin expansion should leverage its operating line, lifting AEBITDA margins toward 8.0% by F2028. We believe this growth and margin profile should narrow the valuation gap between ESOA and its peers; currently, ESOA stands at 6.1x F2027E AEBITDA versus 12.0x for comparable companies.

ESOA is an industrial and infrastructure construction company serving water & wastewater, natural gas, power, chemical, automotive, and commercial markets through several subsidiaries. Work requires local crews and equipment near projects, making fleet utilization and labor availability critical.”

For an analyst ratings summary and ratings history on Energy Services Of America Corp. click here. For more ratings news on Energy Services Of America Corp. click here.

Shares of Energy Services Of America Corp. closed at $10.80 yesterday.

You May Also Be Interested In

• Fastenal (FAST) PT Raised to $51 at DA Davidson
• Fastenal (FAST) call put ratio 1.2 calls to 1 put into quarter results
• Baird Downgrades Contineum Therapeutics (CTNM) to Neutral