LGN (NASDAQ:LGN) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts give LGN a “Moderate Buy” consensus from 14 firms, with 10 buys, one strong buy, two holds and one sell; the average 12-month price target is $99.08.
• Legence reported record second-quarter revenue of $1.26 billion, up 111% year over year, and raised its 2026 revenue and adjusted EBITDA guidance. Record backlog and awarded contracts of $5.67 billion also improve future revenue visibility.
• Despite strong growth, profitability remains a concern: LGN posted a $0.37 per-share loss versus an expected $0.26 profit, while gross margins declined substantially. Analyst reactions were mixed, with some firms raising targets and BTIG cutting its target to $100 from $120.

LGN (NASDAQ:LGN - Get Free Report) has received a consensus rating of "Moderate Buy" from the fourteen research firms that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $99.0833.

Several research analysts have recently commented on LGN shares. Guggenheim raised their price target on LGN from $106.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Royal Bank Of Canada decreased their target price on LGN from $106.00 to $101.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 22nd. BMO Capital Markets raised their target price on LGN from $100.00 to $105.00 and gave the company an "outperform" rating in a report on Friday. Tigress Financial lifted their target price on LGN from $85.00 to $125.00 and gave the company a "buy" rating in a research report on Tuesday, May 19th. Finally, BTIG Research reiterated a "buy" rating and set a $100.00 price target (down from $120.00) on shares of LGN in a research note on Friday.

Key Stories Impacting LGN

Here are the key news stories impacting LGN this week:

• Positive Sentiment: Legence reported record second-quarter revenue of $1.26 billion, up 111% year over year, while adjusted EBITDA rose 114% to $154.6 million. Organic revenue growth excluding the Bowers acquisition was 60%, indicating substantial underlying demand. Legence Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its 2026 revenue outlook to $4.7 billion-$4.8 billion from $4.1 billion-$4.3 billion and lifted adjusted EBITDA guidance to $565 million-$585 million from $470 million-$490 million. Third-quarter revenue guidance of $1.225 billion-$1.275 billion also exceeds the reported consensus estimate. Legence Raises 2026 Guidance
• Positive Sentiment: Backlog and awarded contracts reached a record $5.67 billion, up 105% year over year, providing improved revenue visibility. Demand was particularly strong in data centers and technology, as well as life sciences, government and education.
• Positive Sentiment: Bank of America raised its LGN price target to $116 from $105 and assigned a Buy rating. BMO also increased its target to $105 from $100 and rated the shares Outperform. Both targets imply substantial upside from recent trading levels. Analyst Price Target Revisions
• Neutral Sentiment: BTIG reaffirmed its Buy rating but reduced its price target to $100 from $120, reflecting a more cautious view after the quarterly results. Roth Capital also reiterated a Buy rating.
• Negative Sentiment: Legence reported a loss of $0.37 per share, versus analysts’ expected profit of $0.26. Net loss attributable to Legence widened to $27.8 million from $5.3 million a year earlier, partly reflecting goodwill and long-lived asset impairments.
• Negative Sentiment: Gross margin declined to 17.4% from 21.5%, while adjusted gross margin fell to 18.5% from 21.8%, due to an unfavorable business mix and higher service-delivery costs. Analysts’ mixed reactions, including several price-target reductions, underscore concerns about profitability despite the strong top-line outlook.

LGN Stock Performance

NASDAQ:LGN opened at $66.38 on Friday. LGN has a fifty-two week low of $26.96 and a fifty-two week high of $107.24. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.30 and a current ratio of 1.30. The company has a 50 day moving average price of $73.77 and a 200 day moving average price of $68.40. The stock has a market capitalization of $7.17 billion and a P/E ratio of 288.61.

LGN (NASDAQ:LGN - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported ($0.37) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.63). The firm had revenue of $1.26 billion during the quarter. LGN had a negative net margin of 1.20% and a positive return on equity of 4.48%. Equities research analysts forecast that LGN will post 1.24 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in LGN. Value Aligned Research Advisors LLC increased its position in shares of LGN by 22.4% during the first quarter. Value Aligned Research Advisors LLC now owns 308,141 shares of the company's stock worth $17,398,000 after acquiring an additional 56,460 shares during the period. Pictet Asset Management Holding SA purchased a new position in LGN in the fourth quarter valued at $1,722,000. Renaissance Technologies LLC grew its stake in LGN by 87.6% during the 1st quarter. Renaissance Technologies LLC now owns 579,700 shares of the company's stock worth $32,730,000 after purchasing an additional 270,615 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in LGN during the 4th quarter worth $3,179,000. Finally, Allspring Global Investments Holdings LLC increased its holdings in LGN by 65.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 176,251 shares of the company's stock worth $9,951,000 after purchasing an additional 69,914 shares during the period.

About LGN

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.

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