RBC Capital analyst Ashish Sabadra upgraded APi Group (APG) to Outperform from Sector Perform with an unchanged price target of $45. The company’s organic revenue should accelerate to mid-single-digits in 2025, driven by a strong backlog, an improving demand environment, and abating project selection headwinds, the analyst tells investors in a research note. In addition, the firm estimates a “robust” 60 basis points of margin expansion in fiscal 2025, driven by project selection, pricing, margin-accretive backlog, and Chubb value capture. APi could raise its medium-term margin target to 15% at its investor day in May, driven by progress toward Services revenues and back-office modernization, contends RBC. It believes that as the company’s revenue growth accelerates, the stock should re-rate higher.
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