CECO Environmental: Strong Performance and Future Potential Justify Buy Rating and Increased Price Target
James Ricchiuti has maintained a Buy rating for CECO Environmental, citing strong third-quarter revenues that exceeded expectations and reaffirmed guidance for 2025. The company’s order growth and backlog indicate robust demand, despite some seasonal gross margin weaknesses. Ricchiuti raised the price target from $52 to $57, reflecting confidence in CECO's strategic direction. H.C. Wainwright also supports this with a Buy rating and a $55 price target.
James Ricchiuti has given his Buy rating due to a combination of factors that highlight CECO Environmental’s strong performance and future potential. The company reported better-than-expected third-quarter revenues, which increased significantly year-over-year, surpassing consensus estimates. Additionally, CECO reaffirmed its revenue and adjusted EBITDA guidance for 2025 and provided a preliminary revenue outlook for 2026 that exceeds market expectations.
Despite some seasonal weaknesses affecting gross margins, the company’s order growth and backlog have shown impressive increases, indicating robust demand and operational strength. CECO’s commitment to maintaining a book-to-bill ratio greater than 1.2x for the full year, along with anticipated strong order momentum in 2026, further supports the positive outlook. Consequently, Ricchiuti reiterated the Buy rating and raised the price target from $52 to $57, reflecting confidence in CECO’s strategic direction and financial health.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $55.00 price target.
