Jefferies upgrades Legence to 'buy', raises PT on strong Q3

Jefferies upgrades engineering and maintenance services provider Legence LGN.O to "buy" from "hold"; raises PT to $49 from $39

Shares of LGN rise about 1% to $40.55 in premarket trading

Brokerage cites strong third-quarter performance, acceleration in M&A activity and data center exposure, a high growth area, as reasons for the upgrade

Jefferies notes LGN is growing faster than peers

"We see this continued working capital tailwind to support change in net working capital below mgmt's target of 9% of revenue," says Jefferies

Brokerage sees more room to run because the market has not fully priced-in M&A benefits and cash flow upside, despite LGN's recent 22% share price jump

Stifel also raised PT to $47 from $36

14 of the 15 brokerages rate stock "buy" or higher, one "hold"; median PT is $46

As of last close, LGN was up 43.3% from IPO price since debut in September