In a report released today, Julien Dumoulin Smith from Jefferies maintained a Buy rating on Primoris Services (PRIM – Research Report), with a price target of $70.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that position Primoris Services favorably in the market. The company is well-placed to capitalize on long-term structural trends across various end-markets, despite some uncertainties related to the CEO transition and its exposure to the renewables sector. Primoris Services has minimal direct exposure to tariffs, with contractual terms that allow for cost pass-throughs, mitigating potential financial impacts.
Moreover, the company’s emerging gas generation strategy is poised to capture growth opportunities, representing a significant portion of its industrial end-market revenue. While there are macroeconomic concerns affecting peer valuations, Primoris Services is expected to see solid growth in its renewables segment, particularly in solar, contributing positively to its 2025 margins. Despite a cautious outlook due to management changes, the company’s strategic positioning and growth prospects justify the Buy rating, even with a slightly lowered price target reflecting market volatility.
In another report released on April 10, Guggenheim also reiterated a Buy rating on the stock with a $110.00 price target.