Sterling Infrastructure (STRL) has transformed itself into a leading provider of specialty services for major infrastructure projects through its past acquisitions, and further service expansion should drive its market share, Oppenheimer said in a Thursday note.
The company's site development services for major hyperscalers and other customers account for more than 20% of its operating margins and this positions Sterling Infrastructure to benefit from significant capital plans for data center development, the brokerage said.
Sterling Infrastructure's e-infrastructure backlog indicates high-margin 2026 revenue and the company's acquisition of CEC Facilities Group should boost its capacity to pursue larger projects and beef up backlog through 2026, Oppenheimer added.
Oppenheimer initiated coverage of Sterling Infrastructure, with an outperform rating and a $950 price target.
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