Analysts have increased their price target for Primoris Services from $130.11 to $139.56 per share, citing stronger revenue growth forecasts and continued industry tailwinds.
Analyst Commentary
Recent Street Research offers both optimistic and cautious perspectives on Primoris Services, reflecting differing expectations for growth, execution, and sector momentum as new quarterly reports approach.
Bullish Takeaways- Several bullish analysts have raised price targets for Primoris, citing confidence in the company’s positioning within clean energy and infrastructure segments.
- Exposure to long-term megatrends, including gas-fired generation, renewables, and power delivery, is expected to drive sustained sales growth and margin expansion.
- Strong financial performance and guidance raises, even with no permanent CEO in place, have reinforced bullish sentiment around execution and bottom-line momentum.
- Focus on U.S.-based manufacturing, diversified end markets, and long-term cash flow visibility positions the company favorably relative to industry peers, particularly in utility-scale solutions.
- Some bearish analysts have downgraded their outlooks or adopted a more cautious stance, noting that recent price gains may already reflect near-term catalysts.
- Concerns have emerged over the impact of weather-related tailwinds diminishing in upcoming quarters, which could slow momentum in the power delivery business.
- There is skepticism that upcoming earnings reports will provide further stock upside, with expectations of limited catalysts in the immediate term.
- Caution has also been expressed regarding elevated share performance in 2025, with some suggesting the valuation may have outpaced business fundamentals for now.
What's in the News
- Koti Vadlamudi has been appointed as President and Chief Executive Officer of Primoris Services, effective November 10, 2025. He will succeed interim CEO David King (Key Developments).
- David King will continue to serve as Chairman of the Board following the CEO transition (Key Developments).
- Primoris Services has raised its earnings guidance for 2025, now expecting net income between $241.0 million and $252.0 million, or $4.40 to $4.60 per diluted share (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from $130.11 to $139.56 per share, reflecting a more optimistic outlook.
- Discount Rate has fallen slightly from 8.51% to 8.51%, indicating a marginally lower cost of capital assumption.
- Revenue Growth forecasts have increased from 7.92% to 9.42%, pointing to stronger expected top-line expansion.
- Net Profit Margin estimate has decreased marginally from 4.11% to 4.09%.
- Future P/E ratio is expected to rise from 25.06x to 25.90x, which suggests higher valuation multiples based on earnings projections.
Disclaimer
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