H.C. Wainwright has adjusted its price target for CECO Environmental Corp (NASDAQ: CECO), increasing it from $30.00 to $35.00 while maintaining a Buy rating.
Wainwright's decision comes after evaluating several positive factors that suggest a robust outlook for the company. The revised price target reflects confidence in CECO Environmental's current business trajectory and future prospects.
CECO Environmental's backlog stands at $390.9 million, which is a key indicator of the company's sustained demand. The firm has also observed strong margins in short-cycle sales, which contribute to the positive assessment.
Additionally, CECO Environmental is well-positioned to secure larger projects, which are expected to arise from significant investments in energy and power infrastructure both in the United States and internationally.
The company has updated its financial outlook for 2024, now expecting revenues to be between $600-620 million and adjusted EBITDA to range from $68-72 million. These figures are an improvement from the previous forecast of $590-610 million in revenues and $67-70 million in adjusted EBITDA.
CECO Environmental's strategic approach includes leveraging small acquisitions to expand its product portfolio, supporting both revenue and cash flow growth. In the second quarter of 2024, the company repurchased $2 million of its shares and has approximately $8 million left in its share repurchase program. With a sales pipeline of around $4 billion, CECO Environmental is poised to capitalize on increasing revenue opportunities.
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