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MEG: Government Environmental Contracts Will Drive Future Upside Potential

Upcoming Environmental Regulations Will Drive Demand for Measurement and Remediation Services

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MEG
AnalystConsensusTarget
Not Invested
Published 26 Mar 2025

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
54.5%
7D
-7.6%

Analysts have modestly adjusted their price target on Montrose Environmental Group upward to approximately $32.50 per share. This reflects slightly lower perceived risk and stable long term growth and margin expectations.

What's in the News

  • Kent County, Michigan selects Montrose and partners to deploy foam fractionation systems that will treat over 31 million gallons of landfill leachate annually, targeting PFAS to non detect levels using FOAM X and Super Load media technology (Client announcement)
  • Montrose renews a three year, $3 million laboratory testing contract at the U.S. Department of Energy's Savannah River Site. This extension continues a decade long role in supporting one of the nation's largest environmental cleanup projects (Client announcement)
  • The company raises full year 2025 revenue guidance for the second consecutive quarter and now expects between $810 million and $830 million in sales (Corporate guidance)
  • Montrose reports no share repurchases completed during the third quarter of 2025 under its previously announced buyback authorization (Buyback tranche update)

Valuation Changes

  • Fair Value: Unchanged at approximately $32.50 per share. This indicates a stable assessment of intrinsic value.
  • Discount Rate: Fallen slightly from about 7.62 percent to 7.58 percent. This reflects a modest reduction in perceived risk.
  • Revenue Growth: Effectively unchanged at roughly 3.92 percent annually. This suggests a steady long term growth outlook.
  • Net Profit Margin: Stable at about 3.40 percent, with no material change to long term profitability assumptions.
  • Future P/E: Edged down slightly from roughly 48.85x to 48.80x. This indicates a marginally lower valuation multiple on forward earnings.

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