Emcor Group (EME) should post continued strength in organic growth, margins and bookings in Q3, with consensus margin estimates looking too conservative, UBS Securities said in a note Friday.

The company is expected to report its Q3 results on Oct. 29.

Consensus assumes second-half margins roughly in line with last year, even though management has said the second-quarter margin strength could be repeated, the firm said. UBS is about 20 basis points ahead of consensus on operating margin and expects 20% organic growth in Q3, compared with 19.6% in Q2.

The investment firm cautioned that investors already expect another earnings beat and guidance increase, so a more modest beat and raise could disappoint. It also expects bookings and backlog to grow, although at a slower pace than in the first half.

UBS has a buy rating and a $1,065 price target on Emcor.

The company's shares were up 1.8% in late Friday afternoon trading.

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