UPDATE: Barrington Research Initiates Textura on Underpenetrated Commercial-Construction Market

In a report published Tuesday, Barrington Research analyst Jeff Houston initiated coverage on Textura TXTR with a rating of Outperform and a $35 price target.

In the report, Barrington Research noted, “Textura’s disruptive technology is helping modernize the commercial construction industry, which is large and underpenetrated. Besides first mover advantage, patent protection, pricing power, and opportunities to cross-sell and expand globally, we like that subs generate most (75%) of CPM revenue and are required by Textura’s GC clients to use the solution. Also, the recovering construction industry presents a tailwind. Despite execution and valuation-compression risk, we think that our forecast for a significant profitability ramp and continued 50% organic growth in 2015 justifies more of a valuation premium.”

Textura closed on Monday at $26.69.