Sterling Infrastructure downgraded at D.A. Davidson
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Sean Anthony Eddy
Sterling Infrastructure (NASDAQ:STRL) late Tuesday was downgraded to Neutral from a previous investment rating of Buy among analysts at financial-services firm D.A. Davidson. They said the construction company is more fairly valued after recent gains.
Sterling’s (STRL) shares are up 44% so far this year.
“We do not have material fundamental concerns around the business or market prospects today,” Brent Thielman, analyst at Davidson, said in a February 27 report. “However, expectations (guidance/forecasts) do imply that earning-per-share growth moderates in 2024.”
Sterling’s (STRL) earnings guidance indicates growth of 12% for the current year, compared with 28% growth in 2023 and a range of 48% to 68% for from 2020 to 2022, according to Davidson.
The firm raised its price target for Sterling (STRL) to $115 a share from $86 a share based on an estimated enterprise value that’s 12 times earnings before interest, taxes, depreciation and amortization for 2024, and 11 times ebitda for the following year.