Sterling Infrastructure initiated with an Outperform at William Blair

William Blair last night initiated coverage of Sterling Infrastructure (STRL) with an Outperform rating. Sterling’s “industry-leading” data center site development business is “surging and still in the early innings,” the analyst tells investors in a research note. The firm says the company serves most of the data center industry’s hyper-scalers, including Amazon and Meta. It estimates that 27% of Sterling’s 2025 revenue will come from data centers, on 65% year-over-year growth. Beyond data centers, the company is well positioned to capitalize on elevated U.S. demand for transportation, residential, and advanced facilities development, contends Baird.