Sterling Infrastructure weakness a buying opportunity, says DA Davidson

DA Davidson attributes Sterling Infrastructure (STRL) shares being down nearly 10% to “a misinterpretation of registration filings” as well as a separate pre-announcement from Belden (BDC) with little granularity around what’s causing them weakness. In terms of the filings, the firm thinks there may be a misinterpretation that new warrants would become effective, though in fact the filing was to close the old registration statement and there are “no new warrants being issued.” In terms of any Belden read-though, the firm doesn’t see a correlation to Sterling’s business “at all” and notes the firm did see the company in recent weeks at a conference and “they were very positive on the business.” The firm, which views today’s weakness as a buying opportunity, has a Buy rating and $86 price target on Sterling Infrastructure shares.