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Investing.com - GLJ Research initiated coverage on Argan (NYSE:AGX) with a Hold rating and a $251.00 price target, representing approximately 3% downside from current levels. The stock, which has surged 174% over the past year and is trading near its 52-week high of $268, appears overvalued according to InvestingPro analysis.
The research firm stated that investor expectations have outpaced management’s ability to scale into what GLJ describes as "generational demand" for generation engineering and construction services.
GLJ Research cited Argan’s limited ability to staff large-scale combined-cycle gas generation projects as a factor capping topline growth potential, despite an accelerating forward pricing outlook.
The firm’s financial projections for Argan include topline estimates 5% below consensus for calendar year 2026 and 1% below for 2027.
GLJ Research forecasts EBITDA results to exceed Street estimates by 8% in 2026 and 23% in 2027, suggesting that current market expectations underestimate the long-cycle operating leverage potential of the company.
In other recent news, Argan, Inc. has reported its second-quarter earnings for fiscal year 2026, revealing an impressive earnings per share (EPS) of $2.50. This figure significantly exceeded analyst expectations of $1.64, marking a 52.44% surprise. However, the company reported revenues of $237.7 million, which fell slightly short of the anticipated $243.97 million. In addition to its earnings report, Argan’s Board of Directors announced a 33% increase in its quarterly cash dividend, raising it from $0.375 to $0.50 per share. This increase will be applicable to stockholders of record as of October 23, 2025, and is payable on October 31, 2025. This marks the third consecutive annual dividend increase for Argan. These developments reflect the company’s ongoing financial performance and shareholder returns.
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