Legence Corp's stock fell by 5.63% and hit a 5-day low, reflecting investor concerns following the announcement of a secondary offering.
The decline is attributed to the upsized secondary offering of 8.4 million shares at $45 each, which is expected to close on December 16, 2025. Although the offering reflects strong market demand, Legence will not receive any proceeds as the shares are sold by stockholders affiliated with Blackstone. This situation may lead to increased market liquidity but raises questions about the company's immediate financial strategy.
Investors are likely to monitor how this offering impacts Legence's market position and future financing capabilities, especially given its strong competitive position in engineering and maintenance services for technically demanding sectors.
Wall Street analysts forecast LGN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LGN is 45.40 USD with a low forecast of 37.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast LGN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LGN is 45.40 USD with a low forecast of 37.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 51.170
Low
37.00
Averages
45.40
High
54.00
Current: 51.170
Low
37.00
Averages
45.40
High
54.00
Stifel
Buy
maintain
$50 -> $58
2026-01-26
New
Reason
Stifel
Price Target
$50 -> $58
AI Analysis
2026-01-26
New
maintain
Buy
Reason
Stifel raised the firm's price target on Legence to $58 from $50 and keeps a Buy rating on the shares. The firm sees opportunity for its electrical and mechanical contractor coverage to outperform consensus expectations in Q4, noting that its survey work found that overall activity improved sequentially and was ahead of expectations, the analyst tells investors.
Barclays
Equal Weight
maintain
$37 -> $45
2026-01-23
New
Reason
Barclays
Price Target
$37 -> $45
2026-01-23
New
maintain
Equal Weight
Reason
Barclays raised the firm's price target on Legence to $45 from $37 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the machinery and construction group as part of a Q4 preview. Companies benefiting from interest rate cuts "still reign supreme," the analyst tells investors in a research note. Barclays anticipates "conservative" initial outlooks for 2026.
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Tigress Financial
Ivan Feinseth
Buy
maintain
$54 -> $60
2026-01-22
Reason
Tigress Financial
Ivan Feinseth
Price Target
$54 -> $60
2026-01-22
maintain
Buy
Reason
Tigress Financial analyst Ivan Feinseth raised the firm's price target on Legence to $60 from $54 and keeps a Buy rating on the shares. AI infrastructure momentum and the recent Bowers Group acquisition will further accelerate revenue and cash flow growth, argues the analyst, who notes that the firm's raised target represents a potential return of 25%.
Tigress Financial
NULL
to
Buy
initiated
$54
2025-11-21
Reason
Tigress Financial
Price Target
$54
2025-11-21
initiated
NULL
to
Buy
Reason
Tigress Financial initiated coverage of Legence with a Buy rating and $54 price target. The firm views the company as "uniquely positioned" to drive above-market growth due to "surging" demand in artificial intelligence-enabled data centers, its expansion in healthcare and life sciences, and the need for energy-efficient infrastructure. Legence's liquid-to-chip cooling solutions address the thermal and energy demands of next-generation AI workloads, the analyst tells investors in a research note.
About LGN
Legence Corp. is a provider of engineering, installation and maintenance services for mission-critical systems in buildings. The Company operates through two segments: Engineering & Consulting, and Installation & Maintenance. Its Engineering & Consulting includes Engineering & Design, and Program & Project Management. The Engineering & Consulting segment designs heating, ventilation and air conditioning (HVAC) and other mechanical, electrical and plumbing (MEP) systems for buildings, develops strategies to help reduce energy usage and make buildings more sustainable, and provides program and project management services for clients’ installation and retrofit projects. Its Installation & Maintenance includes Installation & Fabrication, and Maintenance & Service. The Installation & Maintenance segment fabricates and installs HVAC systems, process piping and other MEP systems in new and existing industrial, commercial and institutional buildings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
