Stifel on Wednesday increased its price target for Cardinal Infrastructure Group (NASDAQ:CDNL) to $31 from $28 and left its Buy rating unchanged. The firm noted the acquisition of ALGC and the preliminary fourth-quarter 2025 results as key factors supporting the higher target.
The upgraded target sits against a current market price of $31.19 and falls within a broader analyst target range between $28 and $35. InvestingPro data referenced by market observers shows that Cardinal is trading at a high Price-to-Book multiple of 21.6x.
Drivers cited by Stifel
Stifel highlighted Cardinal Infrastructure’s purchase of ALGC, a site development contractor with operations in Georgia and South Carolina. According to the firm, ALGC derives more than 85% of its revenue from the Atlanta metro area, with roughly 75% to 80% of its revenue tied to housing work. The acquired business reportedly has a wet utility mix of about 50%.
Stifel describes the transaction as attractive on several fronts: it broadens Cardinal’s geographic footprint, is expected to accrete margins and was priced at a reported 5.8x last twelve months (LTM) EBITDA multiple. That multiple is materially lower than Cardinal Infrastructure’s own near-term multiple, which Stifel pegs at approximately 10x NTM EBITDA.
Preliminary fourth-quarter results
Cardinal Infrastructure released preliminary fourth-quarter 2025 results that implied revenue between $142 million and $149 million. That compares with consensus estimates of $124 million. The company also reported implied EBITDA of $25 million to $27 million versus consensus of $22 million. InvestingPro data cited alongside these figures places Cardinal’s market capitalization at $899 million and notes the company has been profitable over the last twelve months, with an enterprise value to EBITDA ratio of 5.9x.
Cardinal also posted initial guidance for 2026 that the company said was in line with expectations after incorporating the contribution from ALGC. InvestingPro-sourced analyst models referenced in market commentary anticipate sales growth for the company in the current year, including a forecasted revenue increase of 38% for fiscal 2025.
Other analyst activity and capital markets moves
Market participants have also pointed to Cardinal’s recent pricing of its initial public offering at $21 per share, which raised roughly $241.5 million in gross proceeds. The IPO comprised 11.5 million shares of Class A common stock, and underwriters have an option to purchase an additional 1.725 million shares.
Following the ALGC acquisition announcement and the preliminary financial disclosures, DA Davidson raised its price target on Cardinal to $35 while maintaining a Buy rating. William Blair initiated coverage with an Outperform rating, calling out the company’s three-year organic revenue growth rate of 28%. Separately, Stifel had also initiated coverage earlier with a Buy rating and a $28 price target, citing vertical integration and market share gains in site development services.
Market takeaway
Analyst commentary and recent disclosures collectively point to a favorable near-term view among several investment banks, driven by the ALGC acquisition, preliminary quarterly results that outstrip consensus, and a sizable IPO that provided fresh capital. At the same time, valuation measures and a spread of analyst targets show there is not a single consensus valuation among market participants.
Readers should note the figures presented above are drawn from company-released preliminary results, analyst notes, and InvestingPro data as reported in market commentary.