Overview of GLJ Research's Rating#
GLJ Research has started coverage of Everus Construction Group (NYSE:ECG) with a hold rating and a price target of $141. This rating suggests that the stock is fairly valued based on the company's opportunities in the data center sector. Currently, Everus shares are trading at $129.34, which gives the company a market capitalization of $6.57 billion.
Valuation Insights#
The price target of $141 is based on what GLJ Research considers a reasonable valuation for Everus's data center projects. However, the firm notes that the stock appears overvalued when compared to its estimated fair value, placing it among companies deemed overvalued in the market.
Factors Affecting Outlook#
Analyst Austin Wang pointed out that limited information on Everus's pre-fabrication capacity and its reliance on cost-plus contracts are factors that limit the firm's ability to predict significant growth in revenue and earnings. Cost-plus contracts typically yield lower profit margins, and Everus's gross profit margin has been reported at just 12.12% over the last year.
Recent Performance and Acquisitions#
In recent news, Everus Construction Group reported strong earnings for the fourth quarter of 2025, with earnings per share (EPS) of $1.08, surpassing expectations of $0.69. The company also achieved $1.01 billion in revenue, a 33% increase from the previous year. Additionally, Everus acquired SE&M Constructors, Inc. for $158 million, which generated $109 million in revenue in 2025 and serves various sectors including pharmaceuticals and healthcare.
Analyst Reactions#
Following these developments, several analyst firms have adjusted their price targets for Everus. Stifel raised its target to $153, citing confidence in the company's growth in data centers. Freedom Capital Markets increased its target to $138, while Cantor Fitzgerald adjusted its target to $115, focusing on margin sustainability and cash flow dynamics. These adjustments reflect a generally positive outlook for Everus Construction Group as it continues to grow and improve its financial performance.