DA Davidson starts Everus Construction coverage with Buy rating
Analyst Kurt Yinger set a US$168 price target, citing Everus’s acquisition strategy, bookings and record backlog while flagging leverage and integration risks.
DA Davidson has initiated coverage of Everus Construction Group with a Buy rating and a US$168 price target. Analyst Kurt Yinger cited recent acquisitions, expanding margins, strong bookings and a record project backlog. The target represented more than 43% upside to Everus’s 4 September closing price, according to the Yahoo Finance report.
Everus completed its US$295 million cash acquisition of Epsilon Industries on 1 September. The deal was financed through cash on hand and borrowings under Everus’s existing credit facilities, increasing leverage. Epsilon designs and manufactures mechanical and electrical building infrastructure systems, with capabilities spanning prefabrication and modular construction in the United States and Canada.
The acquisition expands Everus’s exposure to data centres, advanced manufacturing and healthcare. Epsilon’s operations are expected to add to Everus’s geographic reach and technical capabilities, although the financial contribution and potential synergies remain subject to integration.
Everus reported quarterly bookings above US$2 billion and backlog growth of 53% year on year to a record US$4.6 billion. Second-quarter revenue increased 34%, including 30% organic growth across its Electrical and Mechanical and Transmission and Distribution segments. Management subsequently raised its 2026 guidance to revenue of US$4.5 billion–US$4.7 billion and EBITDA of US$410 million–US$425 million.
DA Davidson’s report also identified risks around leverage, acquisition integration, project timing, market concentration and backlog conversion. Strong bookings and backlog do not guarantee project margins, revenue timing or conversion, particularly if labour and material costs rise or construction activity softens.
