[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5395 followers Created: 2025-06-27 12:55:56 UTC $EME Attached is page X of a 50-page (Initiating Coverage) Baird analyst report on EME issued yesterday entitled: "CORE Construction/Service Platform, Well-Positioned; Initiate Outperform" Baird has an 'Outperform' rating on EME with a $XXX price target. Baird's summary statement regarding EME in the report includes the following: "Initiating Outperform; $XXX target. Net, we like EME's portfolio of mechanical/electrical skilled labor services, servicing a variety of end markets which are collectively experiencing significant investment. The company's history of execution, talent investment/development, and capital deployment have created a durable platform, well-respected. An asset light business model supports consistent/strong FCF generation with a rock-solid balance sheet offering flexibility and lower-risk. Majority (~70%) of contracts are <$10M. Long-tenured management/leadership instills confidence, ensures stability. Skilled craft labor shortage warrants premium. Relative discount to peers (versus historical premium) opportunity today, especially longer-term/quality-focused investors. -- Valuation Discussion: For purposes of valuation, we consider a peer analysis against a universe of specialty contractor direct and indirect peers. In each case, these companies employ significant labor, utilized in construction or general maintenance/inspection services. The chart below contains the current trading multiples for each of these peer sets, with an average 2025 EBITDA trading multiple (consensus) of ~17.0x for the direct peer set and ~14.5x for the indirect set. We believe the direct set is a better comparison universe, with EME more comparable to APG and FIX from both being similar capital light business models with similar end market exposure and relative size. We also include consensus valuation multiples for 2025 and 2026. We believe EV/EBITDA is the preferred valuation metric for comparable analysis as it best normalizes for capital structure differences and non-cash adjustments to earnings. FCF is not typically used as a valuation metric for contractors, given the lumpiness of cash generation, particularly for companies with a higher degree of large project bids with milestone payments. That said, we include P/E and FCF yield metrics in the chart below for completeness, especially given the relative predictability of FCF conversion at EME relative to other specialty contractor peers with heavier lump sum project collections and milestone payments. Importantly, EME has historically traded at the higher end of its peer comp universe, versus today’s trading level closer to the lower-end of the peer group. Our $XXX price target assumes 14.1x EV/EBITDA on our FTM estimates, one year from today, at lower end of peers in the ~12-20x range. Shares historically trade at premium to most specialty contractors, defended by EME’s history of higher relative growth rates/margins, industry-leading returns, and attractive end market exposure. Thus, while recognizing EME’s current premium versus its historical levels, we believe the current valuation level is supported and indeed could have upside against solid execution against attractive thematic growth dynamics across most of EME’s primary end markets." (Page X is not available here as X does not allow me to post pages from reports on this platform) XXX engagements  **Related Topics** [$eme](/topic/$eme) [Post Link](https://x.com/CorleoneDon77/status/1938582065550643327)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
DonCorleone77 @CorleoneDon77 on x 5395 followers
Created: 2025-06-27 12:55:56 UTC
$EME
Attached is page X of a 50-page (Initiating Coverage) Baird analyst report on EME issued yesterday entitled:
"CORE Construction/Service Platform, Well-Positioned; Initiate Outperform"
Baird has an 'Outperform' rating on EME with a $XXX price target.
Baird's summary statement regarding EME in the report includes the following:
"Initiating Outperform; $XXX target. Net, we like EME's portfolio of mechanical/electrical skilled labor services, servicing a variety of end markets which are collectively experiencing significant investment.
The company's history of execution, talent investment/development, and capital deployment have created a durable platform, well-respected. An asset light business model supports consistent/strong FCF generation with a rock-solid balance sheet offering flexibility and lower-risk.
Majority (~70%) of contracts are <$10M. Long-tenured management/leadership instills confidence, ensures stability. Skilled craft labor shortage warrants premium.
Relative discount to peers (versus historical premium) opportunity today, especially longer-term/quality-focused investors.
-- Valuation Discussion:
For purposes of valuation, we consider a peer analysis against a universe of specialty contractor direct and indirect peers. In each case, these companies employ significant labor, utilized in construction or general maintenance/inspection services.
The chart below contains the current trading multiples for each of these peer sets, with an average 2025 EBITDA trading multiple (consensus) of ~17.0x for the direct peer set and ~14.5x for the indirect set.
We believe the direct set is a better comparison universe, with EME more comparable to APG and FIX from both being similar capital light business models with similar end market exposure and relative size. We also include consensus valuation multiples for 2025 and 2026.
We believe EV/EBITDA is the preferred valuation metric for comparable analysis as it best normalizes for capital structure differences and non-cash adjustments to earnings. FCF is not typically used as a valuation metric for contractors, given the lumpiness of cash generation, particularly for companies with a higher degree of large project bids with milestone payments.
That said, we include P/E and FCF yield metrics in the chart below for completeness, especially given the relative predictability of FCF conversion at EME relative to other specialty contractor peers with heavier lump sum project collections and milestone payments.
Importantly, EME has historically traded at the higher end of its peer comp universe, versus today’s trading level closer to the lower-end of the peer group. Our $XXX price target assumes 14.1x EV/EBITDA on our FTM estimates, one year from today, at lower end of peers in the ~12-20x range.
Shares historically trade at premium to most specialty contractors, defended by EME’s history of higher relative growth rates/margins, industry-leading returns, and attractive end market exposure.
Thus, while recognizing EME’s current premium versus its historical levels, we believe the current valuation level is supported and indeed could have upside against solid execution against attractive thematic growth dynamics across most of EME’s primary end markets."
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
Related Topics $eme