William Blair analyst Brian Drab has maintained their bullish stance on THR stock, giving a Buy rating yesterday.
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Brian Drab has given his Buy rating due to a combination of factors that highlight Thermon Group Holdings’ strong financial performance and promising future prospects. The company recently experienced a significant rise in its stock value following the announcement of a robust quarterly performance, which surpassed market expectations in terms of revenue, adjusted EBITDA, and adjusted EPS. This positive outcome was partly due to the company’s successful recovery from previous backlog conversion delays and an improvement in customer spending patterns.
Moreover, Thermon’s strategic initiatives in productivity and cost savings have effectively countered any negative impacts from increased capital expenditure revenue, which typically has lower margins. The company’s project revenue was bolstered by significant LNG project wins, with expectations for continued growth from large projects across various markets. Additionally, Thermon’s expansion into the data center market and the anticipated growth from medium-voltage heater opportunities are expected to contribute significantly to revenue growth in the coming years. The upward revision of fiscal 2026 guidance further underscores the company’s strong growth trajectory.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $33.00 price target.