UBS lowers Comfort Systems USA price target to $1,900 amid margin concerns
UBS maintained a Buy rating on Comfort Systems USA but cut its price target from $2,225 to $1,900, citing softer margins in Q3. The company reported record third‑quarter orders of $7.4 billion and 50.7% revenue growth over the prior twelve months, with diluted earnings of $13.91 per share beating estimates. Despite the strong results, the stock fell to about $1,160.86, down 20.7% over the week.
Why it matters
The reduced target suggests a lower upside for investors and may pressure the share price toward the new $1,900 level (the company’s own guidance). UBS also noted that the buyside‑sell‑side EPS gap is expected to narrow, which could affect future earnings expectations.
Key facts
- 1UBS lowered the price target to $1,900 from $2,225 while keeping a Buy rating. investing.com
- 2The stock was trading at $1,160.86, down 20.7% over the past week. investing.com
- 3Comfort Systems USA reported third‑quarter orders of $7.4 billion, the strongest in company history. investing.com
- 4Revenue grew 50.7% over the last twelve months. investing.com
- 5Diluted earnings per share were $13.91, above analyst estimates of $12.81. investing.com
- 6Current market price was $1,242.87, representing a 38.7% premium to the GF Value™ of $896.16. gurufocus.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.