Centuri initiated with a Neutral at BofA

BofA analyst Sharif El-Sabbahy initiated coverage of Centuri with a Neutral rating and $26 price target. Centuri, the third largest utility services provider in North America, has significant opportunities to right-size its cost base, expand wallet share with customers and pursue M&A as leverage declines, the analyst tells investors in a research note. At the same time, while Centuri has many long-term growth drivers, including energy demand, and some medium-term margin gains, the firm thinks the company’s progress and potential may take time to materialize and that near-term headwinds are likely to pressure revenue growth.