NRW Holdings' (ASX:NWH) existing order book provides a high degree of visibility, with potential upside from stronger activity across electrical and heating, ventilation, and air conditioning services as well as further margin improvement, Euroz Hartleys said in a Thursday note.

The company's Fredon subsidiary secured the first stage of the design and construct mechanical scope for Stack Data Centre's MEL03 hyperscale data center in Melbourne, worth around AU$115 million.

Data centers are a solid area for Fredon to continue winning work, with Melbourne emerging as a major hyperscale hub, the equity research firm said.

It added that the award shows the business can compete for large, complex packages outside of NRW Holdings' traditional resources exposure.

"We continue to recommend [NRW Holdings] as a key pick in the space, supported by an exceptionally strong demand backdrop across resources and infrastructure," Euroz Hartleys said.

The investment firm has a buy rating on NRW with a price target of AU$9.06 per share.

The company's shares fell 2% in recent Friday trade.