Truist Names APi Group (APG) Top Pick as Facility Services Demand Holds Firm

Core Viewpoint - Truist has raised its price target on APi Group Corporation (NYSE:APG) to $50 from $41, reaffirming its Buy rating and identifying APi as a top pick in the facility services sector for 2026 due to strong project demand and favorable market conditions [1][6]. Group 1: Company Overview - APi Group Corporation operates as a global leader in business services, providing fire and life safety, security, elevator and escalator, and specialty services through a network of over 500 locations worldwide [3]. - The company generates a significant portion of its revenue from recurring, statutorily mandated, and contracted services, serving a diversified customer base across multiple industries [3]. Group 2: Recent Developments - On February 2, APi announced the completion of its acquisition of CertaSite, which enhances its position as a leading safety services provider focused on non-discretionary, regulatory-driven, and recurring revenue streams [2]. - The acquisition of CertaSite is expected to be accretive to APi's shareholder value creation framework, supported by its inspection-led model, strong EBITDA margins, and asset-light structure [2]. Group 3: Market Outlook - Truist views the facility services space favorably heading into 2026, describing it as "largely insulated" from broader macroeconomic swings and AI-related labor market shifts [1]. - The firm anticipates further upside to Street estimates for APi as multiples expand, noting that APi shares still trade at a discount compared to recent private equity deals in the fire safety sector [1].