LGN (NASDAQ:LGN) Shares Up 6.7% Following Analyst Upgrade

Key Points

• LGN shares rose 6.7% after BMO Capital Markets raised its price target from $100 to $105 and maintained an outperform rating. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $97.55.
• 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, driven partly by data-center and technology demand, improved future revenue visibility.
• Despite strong revenue growth, the company posted a $0.37 per-share loss, missed estimates, and saw gross margin fall to 17.4% from 21.5%. Goodwill and asset impairments contributed to a wider net loss, prompting some analysts—including BTIG—to lower price targets.

LGN (NASDAQ:LGN - Get Free Report) shares shot up 6.7% during trading on Friday after BMO Capital Markets raised their price target on the stock from $100.00 to $105.00. BMO Capital Markets currently has an outperform rating on the stock. LGN traded as high as $67.60 and last traded at $67.4760. Approximately 310,229 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 1,470,647 shares. The stock had previously closed at $63.24.

Several other equities research analysts have also issued reports 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. Roth Capital reissued a "buy" rating and set a $120.00 target price on shares of LGN in a research report on Wednesday. Loop Capital assumed coverage on LGN in a report on Wednesday, April 29th. They set a "buy" rating and a $96.00 price target on the stock. Barclays raised their price target on LGN from $60.00 to $80.00 and gave the stock an "equal weight" rating in a research report on Monday, June 22nd. Finally, Tigress Financial lifted their price target on shares of LGN from $85.00 to $125.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $97.55.

Key Headlines 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 revenue excluding the Bowers acquisition increased 60%. Adjusted EBITDA rose 114% to $154.6 million. 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. Third-quarter revenue guidance of $1.225 billion-$1.275 billion is also above consensus expectations. Legence Guidance
• Positive Sentiment: Backlog and awarded contracts reached a record $5.67 billion, up 105%, providing improved visibility into future revenue. Demand was particularly strong in data centers and technology. Legence Record Revenue and Backlog
• Neutral Sentiment: BMO raised its price target to $105 from $100 and maintained an outperform rating, while Roth Capital reiterated a buy rating with a $120 target. Analyst Forecasts for Legence
• Negative Sentiment: Legence posted a loss of $0.37 per share, substantially missing the $0.26 consensus estimate. Net loss widened to $34.6 million from $3.9 million a year earlier, despite the revenue increase.
• Negative Sentiment: Gross margin declined to 17.4% from 21.5%, reflecting an unfavorable mix shift and higher delivery costs. The quarter also included $21.6 million of goodwill impairment and $19.5 million of long-lived asset impairment.
• Negative Sentiment: Analysts lowered targets following the results: BTIG cut its target to $100 from $120 while retaining a buy rating, and other analysts also revised forecasts downward. The target cuts signal concern about profitability and execution, even though most ratings remain positive. Analysts Revise Legence Forecasts

Institutional Trading of LGN

Several institutional investors and hedge funds have recently made changes to their positions in LGN. Assetmark Inc. purchased a new stake in shares of LGN during the fourth quarter valued at $31,000. KBC Group NV purchased a new position in LGN in the 1st quarter worth about $66,000. Aster Capital Management DIFC Ltd purchased a new position in shares of LGN during the fourth quarter worth approximately $64,000. Kestra Advisory Services LLC bought a new position in LGN in the fourth quarter worth approximately $91,000. Finally, Avior Wealth Management LLC bought a new stake in LGN during the 2nd quarter valued at $203,000.

LGN Stock Up 6.9%

The firm has a market capitalization of $7.30 billion and a PE ratio of 290.83. The company has a fifty day simple moving average of $74.12 and a two-hundred day simple moving average of $68.42. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.30 and a current ratio of 1.30.

LGN (NASDAQ:LGN - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.37) EPS for the quarter, missing the consensus estimate of $0.26 by ($0.63). The firm had revenue of $1.26 billion during the quarter. Analysts forecast that LGN will post 1.24 EPS for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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