ITG (ITG) is well positioned to benefit from rising demand for broadband infrastructure upgrades as communication networks require increased connectivity and speed, BofA Securities said Monday in a report initiating coverage of the company.

Favorable industry trends are supported by network operators increasingly outsourcing labor and expenses to specialized service providers, BofA said. ITG's backlog and recurring project base ae underpinned by aster service agreements that provide predictability around into costs and contract terms, the report said.

ITG's repeatable service and maintenance work helps limit project risk, while broadband investment and infrastructure expansion create opportunities for long-term growth, the report said.

Although ITG operates at a smaller scale and has less exposure to fiber work than larger public peers, the company can still outpace them over time through roll-up acquisitions and should maintain steady revenue on existing contracts, the report said.

BofA has a buy rating on ITG stock and a $16 price objective.

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