LGN (NASDAQ:LGN) Price Target Raised to $116.00

Key Points

• Bank of America raised LGN’s price target to $116 from $105 and maintained a “buy” rating, implying 78.08% upside from the stock’s $65.14 price. The consensus rating is “Moderate Buy,” with an average target of $99.08.
• Legence reported record quarterly revenue of $1.26 billion, up 111% year over year, and raised its 2026 revenue guidance to $4.7 billion-$4.8 billion. Backlog and awarded contracts also reached a record $5.67 billion, supporting future growth visibility.
• Despite strong growth, LGN missed quarterly earnings expectations with an adjusted loss of $0.37 per share versus the expected $0.26 profit, while gross margins declined. Analysts remain broadly positive, although BTIG cut its target to $100 from $120 and concerns about valuation and profitability persist.

LGN (NASDAQ:LGN - Get Free Report) had its price target hoisted by equities researchers at Bank of America from $105.00 to $116.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Bank of America's price objective indicates a potential upside of 78.08% from the company's current price.

Several other research firms also recently weighed in on LGN. BTIG Research reaffirmed a "buy" rating and issued a $100.00 price objective (down from $120.00) on shares of LGN in a research note on Friday. Loop Capital started coverage on LGN in a report on Wednesday, April 29th. They issued a "buy" rating and a $96.00 target price on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of LGN in a report on Friday, June 26th. Guggenheim lifted their price target on LGN from $106.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Finally, Roth Capital reiterated a "buy" rating and issued a $120.00 price objective on shares of LGN in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $99.08.

LGN Price Performance

LGN stock traded up $1.90 during trading on Friday, reaching $65.14. 922,337 shares of the company were exchanged, compared to its average volume of 1,475,239. 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 stock's 50 day moving average price is $74.12 and its 200 day moving average price is $68.42. LGN has a 52-week low of $26.96 and a 52-week high of $107.24. The company has a market cap of $7.04 billion and a P/E ratio of 283.33.

LGN (NASDAQ:LGN - Get Free Report) last issued 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 business had revenue of $1.26 billion for the quarter. As a group, analysts predict that LGN will post 1.24 earnings per share for the current fiscal year.

Institutional Investors Weigh In On LGN

A number of large investors have recently bought and sold shares of LGN. Avior Wealth Management LLC purchased a new stake in shares of LGN in the second quarter valued at $203,000. Bank of America Corp DE raised its stake in LGN by 161.4% in the 1st quarter. Bank of America Corp DE now owns 680,217 shares of the company's stock valued at $38,405,000 after purchasing an additional 419,997 shares during the last quarter. Value Aligned Research Advisors LLC lifted its holdings in LGN by 22.4% in the 1st quarter. Value Aligned Research Advisors LLC now owns 308,141 shares of the company's stock valued at $17,398,000 after purchasing an additional 56,460 shares in the last quarter. Royal Bank of Canada lifted its holdings in LGN by 662.4% in the 1st quarter. Royal Bank of Canada now owns 22,856 shares of the company's stock valued at $1,290,000 after purchasing an additional 19,858 shares in the last quarter. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of LGN by 57.9% during the 1st quarter. The Manufacturers Life Insurance Company now owns 18,129 shares of the company's stock worth $1,024,000 after purchasing an additional 6,647 shares during the last quarter.

Key LGN News

Here are the key news stories impacting LGN this week:

• Positive Sentiment: Legence reported record Q2 revenue of $1.26 billion, up 111% year over year, with organic growth excluding the Bowers acquisition of 60%. Adjusted EBITDA rose 114% to $154.6 million, highlighting strong demand and operating leverage. Legence Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised full-year 2026 revenue guidance to $4.7 billion-$4.8 billion from $4.1 billion-$4.3 billion and increased adjusted EBITDA guidance to $565 million-$585 million. Q3 revenue guidance of $1.225 billion-$1.275 billion also exceeds the roughly $1.1 billion consensus cited in the reports. Legence Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Backlog and awarded contracts reached a record $5.67 billion, up 105% year over year, providing greater visibility into future revenue. Demand was particularly strong in data centers and technology, as well as life sciences, education and government markets.
• Positive Sentiment: BMO Capital Markets raised its LGN price target to $105 from $100 and maintained an “outperform” rating. Roth Capital also reiterated its “buy” rating with a $120 target. Benzinga analyst update
• Neutral Sentiment: LGN’s balance sheet showed approximately $292 million in cash, $1.03 billion in debt and net leverage of 1.6 times adjusted EBITDA. Leverage remains manageable but could limit flexibility as the company integrates acquisitions.
• Negative Sentiment: Legence reported a Q2 adjusted loss of $0.37 per share, versus analyst expectations for earnings of $0.26 per share. The company’s net loss attributable to Legence widened from $5.3 million to $27.8 million year over year.
• Negative Sentiment: Gross margin fell to 17.4% from 21.5%, while adjusted gross margin declined to 18.5% from 21.8%, reflecting an unfavorable revenue mix and higher service-delivery costs.
• Negative Sentiment: BTIG reaffirmed its “buy” rating but lowered its price target to $100 from $120. Reports also indicated that several analysts reduced forecasts following the earnings release, increasing concerns about valuation and profitability execution. Analyst Forecast Revisions Following Q2 Results

LGN Company Profile

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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