Narrative Update on Montrose Environmental Group
Analysts have raised their fair value price target for Montrose Environmental Group from $30.80 to $32.67. They cite improved revenue growth projections as a key driver behind the updated outlook.
What's in the News
- Supporting over 30 projects nationwide, Montrose assists chemical manufacturers in preparing for new hazardous air pollution regulations, including emissions testing and compliance strategies for the upcoming HON MACT rule. Key deadlines are set for mid-2026 and 2027 (Key Developments).
- Awarded a 5-year contract to help a major energy company transition legacy Canadian oil and gas sites toward regulatory closure and environmental renewal. The work focuses on land and water restoration as well as wildlife habitat protection (Key Developments).
- Revised 2025 earnings guidance, raising expected revenue to between $795 million and $835 million. This signals 17% growth at the midpoint over full-year 2024 (Key Developments).
- Reported no shares repurchased during the latest buyback tranche period from May 7, 2025 to June 30, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: increased from $30.80 to $32.67, reflecting a modest upward revision.
- Discount Rate: increased slightly from 7.39% to 7.46%.
- Revenue Growth: forecast improved from 5.32% to 6.47%, indicating higher anticipated top-line expansion.
- Net Profit Margin: decreased slightly from 7.25% to 7.03%.
- Future P/E: rose from 21.94x to 23.29x, indicating elevated valuation expectations.
Disclaimer
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