Primoris Services (PRIM – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Julien Dumoulin Smith from Jefferies reiterated a Buy rating on the stock and has a $73.00 price target.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that suggest Primoris Services is positioned for growth. The company’s involvement in multiple Gas Generation projects and its strong presence in the Communications and Solar sectors are seen as underappreciated opportunities that could drive significant organic growth. Additionally, Primoris’s differentiated product offerings in Premier PV and eBOS solutions are expected to capture market share, contributing to increased profitability.
Despite some concerns about the company’s concentrated business mix in solar and related challenges, the current market discount appears to overstate these risks. As Primoris achieves its targets and expands its presence in the renewables and power sectors, the valuation is expected to improve. The unexpected CEO change is seen as a personal matter without financial implications, and the company’s ability to maintain consistent financial performance remains a key factor for investor confidence. The price target is based on a blended multiple relative to diversified peers, reflecting the company’s potential for margin improvement and cash flow sustainability.
In another report released on March 3, Guggenheim also maintained a Buy rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PRIM in relation to earlier this year.