Wells Fargo Boosts Centuri Holdings (CTRI) PT to $30 Despite Expected Sector Slowdown

Centuri Holdings Inc. (NYSE:CTRI) is one of the best young stocks to buy and hold for 3 years. On January 7, Wells Fargo analyst Joseph O’Dea raised the firm’s price target on Centuri Holdings to $30 from $25, while maintaining an Overweight rating on the shares. In its review of the Electrical Equipment & Multi-Industry sector, the firm anticipated that initial 2026 guidance would be largely underwhelming. Wells Fargo suggested that this stems from a prudent approach by management to set conservative targets and manage investor expectations early in the year.

Centuri Holdings Inc. (NYSE: CTRI) reported that its Q3 2025 revenue reached $850 million, which was an 18% year-over-year increase. This performance was supported by a 25% jump in base revenue and a 28% rise in base gross profit. The company’s future prospects also reached a milestone as its backlog grew to $5.9 billion, which was up from $5.3 billion in the previous quarter, and was supported by $815 million in new bookings during Q3 alone.

The company is prioritizing higher-margin opportunities over pure volume. Management highlighted that data center projects generally offer superior margins compared to traditional MSAs. In its current $3 billion pipeline of strategic bids, Centuri Holdings is managing a mix of $1.7 billion in new bid work and $1.3 billion in renewals, with a project split of 60% electrical and 40% gas. This data-driven approach allows the company to focus on profitable growth by tracking win rates and targeting projects that avoid the seasonality typical of utility work.

Centuri Holdings Inc. (NYSE:CTRI) operates as a utility infrastructure services company in North America. The company operates through four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services.

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Disclosure: None. This article is originally published at Insider Monkey.