APi Offers 'Attractive Entry Point' Amid Rotation Away From Data Centers, Truist Says

03:02 PM EDT, 09/17/2026 (MT Newswires) -- APi Group (APG) offers an "attractive entry point" as the stock has been unfairly pressured by the rotation away from the data center infrastructure theme, Truist Securities said Thursday. The brokerage estimates data center customers represent about 11 to 12 points of revenue, with nearly 3 points accounting for recurring service work and 8 to 9 points from construction, according to the note. Truist believes another reason for the lagging share performance this year has been the deceleration in the Safety Services segment to 4.7% in Q2 from 6.6% in Q4 2025, the note added. Investors believe the benchmark for a successful H2 is organic growth of more than 5% in each segment, driven by a supportive backdrop for project activity, more thoughtfully chosen international projects after the May 2025 investor day, and a healthy backlog growth of 25% cited last quarter, the brokerage said. Truist expects the company to deliver a beat and raise in Q3, with revenue of $2.4 billion to $2.42 billion and EBITDA of $335 million, versus consensus estimates of $2.40 billion and $332 million, respectively. Truist kept a buy rating on APi Group with a price target of $55. Price: 37.01, Change: +0.25, Percent Change: +0.67