Added to YB: 2026-10-13
Pitch date: 2026-10-09
LGN [bullish]
Legence Corp.
-10.76%
current return
Author Info
Monte Independent Investment Research is a small- and mid-cap industrials research firm that specializes in uncovering value in small- and mid-cap industrials through a hybrid research approach that blends top-down market analysis with bottom-up company fundamentals. Sign up for the newsletter.
Company Info
Legence Corp. provides engineering, installation, and maintenance services for mission-critical systems in buildings in the United States.
Market Cap
$4.0B
Pitch Price
$50.76
Price Target
104.00 (+130%)
Dividend
N/A
EV/EBITDA
16.36
P/E
-107.03
EV/Sales
1.40
Sector
Construction and Engineering
Category
growth
Research & Analysis: Legence Corp. (NASDAQ: LGN)
LGN: Legence is priced for an AI data-center slowdown at ~$52, yet its $5.7B backlog rose 105% year over year; completed installations could expand the base for long-term maintenance revenue. At 10.4x EV/adjusted EBITDA—42% below peers—the $104 target implies roughly 100% upside at 11.93x eFY27 EV/adjusted EBITDA. Pricing pressure and scarce labor threaten margin expansion; Q3 focus is book-to-bill above 1.0x and stable gross margins, while a backlog decline or gross margin below 17% would trigger a thesis review.
Read full article (7 min)