Acuren (TIC) likely needs to outgrow its end market to sustain a mid-single-digit organic growth over time, UBS Securities said in a Friday note as it initiated coverage on the company with a neutral rating and a $13 price target.
A longer public company track record is needed to build conviction, the firm said.
UBS said Acuren could achieve outgrowth through competitive positioning, a focus on recurring revenue, and leadership in rope access, but a longer track record is needed to build confidence in sustainable mid-single-digit organic growth.
The firm forecasts Acuren to grow organic revenue by 4 to 5% in 2025 and 2026 but noted that sustaining this level would likely require the company to gain market share.
The firm noted that Acuren, a provider of nondestructive testing and rope access services for oil and gas and other industrial markets, is looking to establish a steady operating model in historically cyclical end markets.
UBS said improved oil and gas fundamentals, strong execution, and return-accretive capital deployment could lead to a more positive view, while a weaker demand backdrop or execution challenges could have the opposite effect.
Acuren shares were down over 2% in recent Friday trading.
Price: 11.47, Change: -0.25, Percent Change: -2.13
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