On Friday, Cantor Fitzgerald launched its coverage of Centuri Holdings Inc (NYSE:CTRI), signaling a positive stance with an Overweight rating and setting a price objective of $34. This target assesses a substantial upside of approximately 20% relative to the stock’s trading price of $28.36, which is already close to its 52-week peak of $28.75.
The investment firm identifies Centuri as a provider dedicated to utility infrastructure services, anchored by a broad and recurring revenue base established primarily through long-term Master Service Agreements (MSAs) with regulated electric and gas utilities. Based on InvestingPro data, the company holds a market capitalization near $2.82 billion and has realized an impressive 36% increase in share price during the past six months.
Since its separation from Southwest Gas in 2024, Centuri has been publicly traded with enhanced corporate governance, more disciplined approaches to capital allocation, and a heightened emphasis on operational excellence, according to Cantor Fitzgerald. The firm points to Centuri’s record backlog of $5.9 billion, of which about 86% is backed by MSAs, providing substantial multi-year revenue visibility.
The company maintains a sound liquidity position, reflected by a current ratio of 1.67, demonstrating that liquid resources exceed short-term financial obligations. Cantor Fitzgerald also draws attention to Centuri’s $13 billion pipeline encompassing renewal opportunities and strategic bids, particularly in expanding areas such as electric distribution, system upgrades, and data-center-related utility projects. These initiatives support organic growth while sustaining a low-risk operational model.
Further financial projections indicate expected net income growth during the current year. However, the stock is currently trading at a relatively elevated price-to-earnings ratio, signalling a valuation premium. For more comprehensive insights, Centuri’s detailed Pro Research Report provides over ten additional professional recommendations and analyses.
Recent company developments include securing more than $870 million in new energy infrastructure contracts, predominantly consisting of renewals of existing MSAs with investor-owned utilities on the East Coast. Alongside approximately $500 million in new customer awards, these achievements have contributed to total bookings of around $4.3 billion for the year. The portfolio of wins combines both strategic bids and new MSAs, underpinning Centuri’s steady expansion in the utility and energy infrastructure space.
Complementing organic growth, Centuri completed the acquisition of Connect Atlantic Utility Services Corporation, enriching its capabilities in Canada by offering both electric and gas services. Financial maneuvers include a public stock offering of 7.4 million shares priced at $21.50 each, expected to generate gross proceeds near $160 million, with an option for underwriters to procure additional shares. The offering anticipates closing on November 14.
On the corporate front, James W. Connell, Jr., serving as executive vice president and chief commercial and strategy officer, has announced his resignation effective January 31, 2026, citing personal reasons unrelated to any disputes with the company. These strategic and leadership developments collectively underscore Centuri’s ongoing efforts to strengthen its presence and contract portfolio within the energy sector.