DA Davidson increased its price objective for Cardinal Infrastructure Group (NASDAQ:CDNL) to $35.00 from $30.00 while reiterating a Buy rating on the shares. The updated target equates to an approximate 13% upside from the prevailing market price of $30.90, a level that has already exceeded the company’s 52-week high of $29.75.
The analyst action follows Cardinal Infrastructure’s disclosure of the planned acquisition of ALGC along with preliminary financial information and guidance. DA Davidson’s valuation approach applies a 12x multiple to a baseline 2026 EBITDA figure derived from the company’s recently shared guidance parameters, which include minimum revenue and adjusted EBITDA margin assumptions and an allowance for transaction costs.
Cardinal carries an approximate market capitalization of $899 million and reported a trailing twelve-month EBITDA of $68.19 million. DA Davidson noted that the company’s expansion into a new geography, accompanied by attractive margins, should be positively received by investors.
Market activity around Cardinal has been notable since its initial public offering. The company priced its IPO at $21 per share, generating about $241.5 million in gross proceeds. The offering consisted of 11.5 million shares of Class A Common Stock, and underwriters were granted a 30-day option to buy an additional 1.725 million shares at the IPO price.
Analyst coverage has been active alongside the IPO and the ALGC announcement. William Blair began coverage with an Outperform rating, citing Cardinal’s three-year organic revenue growth rate of 28%. Stifel also initiated coverage with a Buy rating and set a price target of $28.00, calling attention to Cardinal’s vertical integration in site development services and its specialization in wet utilities, which represent over 60% of the company’s revenue.
Taken together, the IPO proceeds, analyst initiations, and the ALGC transaction disclosures have attracted attention from the sell-side community and contributed to DA Davidson’s decision to raise its target while keeping a bullish stance on the stock.
Summary
DA Davidson raised its price target on Cardinal Infrastructure Group to $35.00 from $30.00 and maintained a Buy rating after the company announced the ALGC acquisition and provided preliminary financial guidance. The new target implies about 13% upside from the current share price of $30.90. The firm uses a 12x multiple on a baseline 2026 EBITDA estimate that incorporates the company’s guidance and transaction costs.
Key points
- DA Davidson raised its price target to $35.00 and kept a Buy rating on Cardinal Infrastructure Group.
- The analyst valuation applies a 12x multiple to baseline 2026 EBITDA using disclosed guidance, and factors in transaction costs.
- Cardinal’s IPO raised approximately $241.5 million at $21 per share; analyst coverage from William Blair and Stifel highlights strong organic growth and vertical integration in site development and wet utilities.
Risks and uncertainties
- Integration and transaction costs related to the ALGC acquisition could affect the realized financial outcomes versus the baseline 2026 EBITDA assumptions - relevant to telecom infrastructure and financial markets.
- The valuation relies on guidance-driven assumptions for 2026 revenue and adjusted EBITDA margin minimums; deviations from those guidance parameters would alter the applied 12x multiple outcome - relevant to investors and valuation models.
- Market reception of the geographic expansion and the operational performance in the new market remain to be observed, which could influence investor sentiment in the wireless infrastructure and site development sectors.