On Thursday, DA Davidson commenced coverage on Orion Marine Group (NYSE:ORN), issuing a Buy rating and setting a price target of $11.00 per share, representing a 51% upside from the current price of $7.29. With analyst targets ranging from $10 to $14, and revenue growing at 10.6% year-over-year, the research firm highlighted Orion’s advantageous position within the marine infrastructure sector, which is expected to benefit from various development projects.
The firm’s analysis pointed to Orion’s involvement in an array of marine infrastructure projects, including military asset enhancements, port developments, maintenance, coastal protection, and private sector deployments. These diverse engagements are seen as drivers for the company’s long-term growth prospects. According to InvestingPro, analysts expect the company to return to profitability this year, with forecasted earnings of $0.12 per share.
Orion Marine Group’s recent leadership changes and financial goals have also drawn attention from DA Davidson. The firm perceives these new initiatives as adding an interesting dynamic to the company’s future, suggesting a compelling risk-reward scenario for investors. For deeper insights into Orion’s financial health and growth potential, InvestingPro offers 8 additional key investment tips and a comprehensive Pro Research Report, part of its coverage of over 1,400 US stocks.
The analyst’s statement underscored the strategic advantages that Orion holds in the market, "We are initiating coverage of Orion (ORN) with a BUY rating and $11 price target. As a unique beneficiary of marine infrastructure development, including enhancements to military assets, ports, maintenance, coastal protection and private deployment; we see a LT case for growth."
DA Davidson’s coverage initiation and price target announcement for Orion Marine Group reflect a positive outlook for the company’s stock, as it aligns with broader developments in the marine infrastructure industry.
In other recent news, Orion Group Holdings (NYSE:ORN) has secured three new construction contracts valued over $110 million, set to commence in 2025. These include an $88 million contract for the extension of the Hugh K. Leatherman Terminal Wharf at the Port of Charleston, a $12.9 million subcontract for Tampa’s West Bank Riverwalk pedestrian bridge project, and a $10.3 million contract for a new data center building in Garland, Texas.
Orion Group Holdings reported Q3 revenue of $226.7 million, a 35% increase from the previous year, and adjusted EBITDA rose to $15.2 million, a 62% year-over-year increase. The company has also secured $116 million in new contracts, including significant projects at Portage Bay Bridge and the Port of Houston. Despite this growth, the company’s backlog has seen a reduction from the previous quarter.
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