Primoris Services: Strong Financial Performance and Growth Potential Justify Buy Rating

Analyst Drew Chamberlain of J.P. Morgan maintained a Buy rating on Primoris Services (PRIM – Research Report), retaining the price target of $90.00.

Drew Chamberlain has given his Buy rating due to a combination of factors that highlight Primoris Services’ strong financial performance and future growth potential. Despite a recent dip in stock price following a reiteration of FY25 guidance and a slowdown in bookings, the company reported record first-quarter earnings that surpassed expectations. This performance, coupled with management’s confidence in achieving the higher end of their earnings range, suggests a robust financial outlook.
Furthermore, Primoris Services’ strategic positioning in the utility infrastructure services market, particularly in renewable energy and electric power delivery, provides a solid foundation for long-term growth. The company’s strong backlog and execution capabilities offer multi-year earnings visibility, making it an attractive investment. Chamberlain’s confidence is further supported by the company’s financial metrics, such as a low net debt-to-equity ratio and a stable EBITDA margin, which contribute to a favorable risk-reward profile. Consequently, Chamberlain maintains a $90 price target, reflecting a positive outlook on Primoris Services’ future performance.

Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PRIM in relation to earlier this year.