Tigress Financial raises Legence stock price target on AI growth

Tigress Financial Partners has increased its price target for Legence Corp (NASDAQ:LGN) shares to $130.00, up from an undisclosed previous level, while maintaining a Buy rating. This new target is in line with Legence's high target of $125 set by the firm, and the current stock price of $64.91 is below InvestingPro's Fair Value estimate of $67.14, indicating potential undervaluation.

The analyst praised Legence's AI infrastructure, record backlog, and accelerating earnings growth as key factors contributing to the higher price target. The company's strong second-quarter 2026 results were driven by demand for AI infrastructure, with revenue growth of 69% year-over-year. Six analysts have raised their earnings guidance for the upcoming period, according to InvestingPro data.

Legence's AI infrastructure, operating leverage, and capital efficiency are driving improvements in return on capital and economic profit, positioning the company for growth in AI, advanced manufacturing, and energy infrastructure. The firm also highlighted the company's capital allocation strategy, which includes rapid deleveraging, strategic mergers and acquisitions, and fabrication expansion.