Montrose Environmental Group’s Strategic Positioning and Growth Potential Highlighted by U.S. Air Force Contract

Montrose Environmental Group (MEG – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst James Ricchiuti from Needham reiterated a Buy rating on the stock and has a $39.00 price target.

James Ricchiuti has given his Buy rating due to a combination of factors that highlight Montrose Environmental Group’s strengths and potential for growth. The recent confirmation of MEG’s selection by the U.S. Air Force for a significant multi-year contract underscores the company’s expertise in environmental remediation, particularly in dealing with both traditional and emerging contaminants like PFAS. This contract, which could be worth up to $1.5 billion over a decade for all involved companies, positions MEG as a key player in the industry, even though no immediate financial impact is expected from this contract in 2025.
Additionally, while a substantial portion of MEG’s business in 2024 was derived from commercial clients, including major global entities in energy, chemical, and manufacturing sectors, the company’s capabilities continue to be acknowledged by various governments and agencies. This recognition, as evidenced by the recent Department of Defense award, reinforces MEG’s reputation and potential for future government contracts, supporting the Buy rating given by Ricchiuti.

In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $33.00 price target.