Willdan Group (WLDN) continues to see "stable deal flow" in all of its customer groups, especially in the commercial segment which is expected to make up about 15% of the company's fiscal 2025 revenue, Wedbush said in a note Thursday.
With most of Willdan's contracts coming from state governments and municipalities, the company has less risks tied to any federal budget cuts, thus, providing for stable revenue generation, Wedbush analysts said.
Willdan's core businesses remain "critical" to the market, as the company helps clients solve their infrastructure and address energy demand issues, while generating more reliable grids for disasters, load increases and unforeseen outages, Wedbush said.
Wedbush analysts said they believe Willdan is "well-positioned" to take advantage of the current "AI Revolution" as data center demand drives "significant electricity load growth," which in turn provides the company with "a strong pipeline of opportunities" going forward.
Wedbush maintained its outperform rating on the company and raised its price target to $85 from $56.
Price: 74.67, Change: +2.50, Percent Change: +3.46
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