UPDATE: DA Davidson Raised PT to $38 on EMCOR Group on Outlook

DA Davidson reiterated its Buy rating on EMCOR Group

and raised its price target from $35 to $38. DA Davidson commented, "We are raising our estimates slightly, primarily based on higher margin assumptions. We expect revenue growth to remain subdued based on market project opportunities in industrial and high value projects, as well as service margins. Our estimates for 2012 are at the upper end of management's implied guidance for EPS of $2.00-$2.10. We have also raised our 2013 estimates, as shown below. For 2014 we now expect EPS of $2.90, up from $2.75 previously. Based on the higher earnings prospects we are also increasing our price target to $38 from $35, or 15x and 13x our 2013 and 2014 EPS estimates, respectively." EMCOR Group closed at $31.30 on Thursday.