Badger Infrastructure Price Target Lifted to $94.00 at Stifel Canada
Stifel Canada raised its price target on the shares of Badger Infrastructure Solutions (BDGI.TO) to $94.00, from $82.00, while maintaining a buy rating on the company after it reported a first-quarter earnings beat.According to analyst Ian Gillies, Badger's revenue growth and EBITDA margins are two positive data points supporting his view that higher truck build is required to meet robust demand. His thesis that Badger's stock is a beneficiary of large construction capex in the U.S. is unchanged with strong demand across data centers, energy and infrastructure, he adds.Gillies is of the view that the underlying fundamentals of Badger's business support a P/E in the range of 22x-23x. Construction peers in Canada and the U.S. have seen valuations gap up into the range of 25x-30x 2027E P/E, and Badger should also participate in this trend given it has very similar exposure.Management's commentary also reaffirms Gillies' view that margins will continue to improve in the second half of this year and in 2027, to reach its target range of 25%-30% (Stifel 2027E: 26.2%).Price: $79.93, Change: $+1.57, Percent Change: +2.00%