ITG (NASDAQ:ITG) has received ‘Buy’ ratings from both Bank of America and UBS on Monday, with the firms citing the communications infrastructure services provider's growth prospects, recurring revenue base and acquisition opportunities.
Bank of America began coverage with a $16 price target, writing that ITG is well positioned to benefit from continued investment in digital and communications infrastructure.
The bank’s analysts said backlog, recurring work and mergers and acquisitions provide a path to sustained above-market growth as the company reduces leverage and improves free cash flow conversion.
The firm highlighted ITG's $3.06 billion backlog at the end of the first quarter of 2026, including $1.43 billion scheduled for the next 12 months, and noted that 92% of revenue is covered by master service agreements, providing revenue visibility.
It also expects ITG to outgrow larger peers over time through acquisitions, while identifying lower fiber-to-the-home exposure and customer concentration as key risks.
UBS also initiated coverage with a $18 price target, writing that expected growth in digital connectivity markets and company-specific initiatives are not fully reflected in the stock.
The bank forecasts EBITDA growth of 32% in 2026, 27% in 2027 and 16% in 2028, driven by residential broadband investment, long-haul and middle-mile projects supporting data centers, market share gains and acquisitions.
UBS noted that ITG's next-12-month backlog covers about 87% of projected 2026 revenue and identified data center interconnect work and additional acquisitions as potential upside drivers.
The firm also pointed to risks, including ITG's customer concentration, with about 60% of revenue tied to Charter Communications and Comcast, although it expects customer diversification, market share gains and acquisitions could help offset potential declines in cable spending.
ITG shares were down about 4% at around $13 in afternoon trading.