- Baird analyst Andrew Wittmann downgraded APi Group Corp (NYSE:APG) and NV5 Global Inc (NASDAQ:NVEE) to Neutral from Outperform with price targets of $26 and $127, respectively.
- The analyst is more selective on engineering and construction stocks into 2022.
- Wittmann states that two years of relative sector outperformance was capped off last year with the passage of federal infrastructure stimulus legislation.
- While the "Build Back Better" bill remains an additional consideration, the sentiment "could cool" as investors digest gains and focus on earnings growth versus relative multiple expansion as catalysts, says the analyst.
- In conclusion, he's "less bullish here, more because of sentiment than fundamentals," and has reduced his number of Outperform ratings.
- Wittmann's best ideas are AECOM (NYSE:ACM) and MasTec Inc (NYSE:MTZ).
- Price Action: APG shares closed lower by 3.06% at $24.74, and NVEE lower by 3.21% at $124.72 on Monday.
