UBS upgrades TIC Solutions stock rating on growth acceleration

UBS has upgraded TIC Solutions' stock rating to "Buy" from "Neutral" and raised its price target to $12.50, marking a 21% upside from the current $10.33 stock price. The investment firm believes the company has reached an inflection point in its growth profile, expecting accelerated pro-forma growth to 5-6% in 2026 and 2027, surpassing the Street's 4-5% estimate and up from 3% in Q2.

This growth acceleration is driven by a 20% year-over-year increase in backlog within Consulting/Engineering and Geospatial services. Additionally, UBS anticipates a return to growth in the company's Inspection Mitigation business in the third quarter, potentially delivering a 15-20% upside using a 10x next-twelve-months-plus-one EBITDA estimate of $393 million.

TIC Solutions' current stock price appears to reflect EBITDA of around $340 million, with UBS anticipating a significant improvement over the company's $245.6 million EBITDA from the previous year. The upgrade comes after a challenging year for TIC Solutions, with the firm now projecting profitability. Analysts predict the company will be profitable this year following a loss of $0.56 per share in the prior year.