In a report released today, Drew Chamberlain from J.P. Morgan maintained a Buy rating on Argan, with a price target of $315.00.
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Drew Chamberlain has given his Buy rating due to a combination of factors that highlight Argan’s strong position in the evolving energy market. The company, through its subsidiary Gemma Power Systems, is well-positioned to benefit from the growing demand for AI-driven power solutions. This is supported by a record backlog and a robust pipeline of large-scale gas projects in the US, which provide clear visibility into multi-year growth and margin expansion opportunities.
Additionally, Argan’s financial health is a significant factor in Chamberlain’s positive outlook. The company boasts a strong balance sheet with substantial cash reserves and no debt, alongside a proven track record of successful project execution. These elements, combined with favorable market conditions and pricing dynamics, position Argan as a key player in the anticipated expansion of US gas power infrastructure, justifying the Buy rating.