Analyst James Ricchiuti of Needham reiterated a Buy rating on Ceco Environmental, boosting the price target to $57.00.
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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.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CECO in relation to earlier this year.