Update shared on 17 Nov 2025
Fair value Increased 4.12%Analysts have increased their price target for Primoris Services by approximately $6, raising it from $147 to $153. They cited strong revenue performance in renewables and confidence in long-term growth drivers as reasons for the increase.
Analyst Commentary
Recent research updates reflect a mix of optimism and caution from analysts following Primoris Services' latest performance and sector developments. These perspectives offer insight into both supportive and cautious outlooks on the company's shares and future prospects.
Bullish Takeaways- Bullish analysts are raising their price targets following robust revenue acceleration and continued outperformance in the renewables segment.
- Recent commentary highlights increased confidence in Primoris' exposure to long-term growth trends, including data center infrastructure and utility-scale solutions. This supports sustained margin improvement.
- There is recognition of the company's diversified end market exposure and its positioning to benefit from megatrends, which could drive sales growth and margin expansion going forward.
- Upward revisions in valuation are being justified by the durability of growth across power delivery and natural gas generation, along with enhanced cash flow visibility and operational execution.
- Bearish analysts express concern over recent soft energy segment bookings due to timing factors, which contributed to stock selloffs even amid strong revenue quarters.
- Some caution remains regarding the sustainability of catalysts in the coming quarters, especially as weather-related benefits are not expected to recur in the near term.
- Valuation sensitivity is a noted risk, with the stock having experienced significant price appreciation year to date. This has prompted at least one major firm to downgrade its rating.
- Neutral and cautious stances are emerging as market participants assess whether recent growth rates and improving margins can continue at the current pace.
What's in the News
- Primoris Services Corporation has raised its earnings guidance for the year ending December 31, 2025. Expected net income is now projected between $260.5 million and $271.5 million, or $4.75 to $4.95 per fully diluted share (Key Developments).
- The Board of Directors appointed Koti Vadlamudi as the new President and Chief Executive Officer, effective November 10, 2025. Vadlamudi will succeed David King, who will remain as Chairman (Key Developments).
Valuation Changes
- Fair Value Estimate has increased from $147.30 to $153.36, reflecting a moderate upward revision in anticipated intrinsic value.
- Discount Rate has risen slightly from 8.52% to 8.79%, suggesting a marginal increase in perceived risk or cost of capital.
- Revenue Growth projections have declined from 8.35% to 6.99%, indicating expectations for more moderate top-line expansion.
- Net Profit Margin estimates have edged down from 4.08% to 4.02%, signaling a slight reduction in projected operating efficiency.
- Future P/E Ratio has moved higher from 28.29x to 29.58x, which implies a modestly more optimistic view on future earnings valuation.
Disclaimer
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