Willdan (WLDN) is facing growth opportunities as state and local governments, utilities, and other companies are trying to find further efficiencies with energy deployments and infrastructure buildouts, Wedbush said in a note Wednesday.
With all sectors trying to address issues of load growth and artificial intelligence data center buildouts adding pressure, many companies are asking Willdan for assistance to "navigate the growing complexities in this market without driving up energy costs for the population," Wedbush said.
Willdan's commercial opportunity is now about 15% of the company's revenue, but the split will likely increase in the next six to 12 months as more commercial partners will turn to the company for support with energy optimization projects, according to the note.
Recent news indicating the Trump administration wants Big Tech companies to optimize their data center buildouts amid higher utility bills for consumers is "an incremental positive" for Willdan as its "commercial business revolves around navigating energy constraints and the optimization of infrastructure," Wedbush said.
Wedbush raised Willdan's price target to $145 from $120, while keeping the company's outperform rating.
Price: 126.04, Change: -1.04, Percent Change: -0.81
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