Earnings Model AdjustmentsMinor changes to the earnings model reflect updated assumptions for certain end market growth and profitability, with slight reductions in EPS estimates.
Upside PotentialThe downgrade to Neutral from Buy is due to the expectation that upside potential is diminishing despite strong spin execution.
Valuation ConcernsThe valuation debate is centered around the appropriate multiple to use for the Everus business, with a 10% premium applied to reflect differentiated margin expansion opportunities post-spin.