Primoris Services price target raised to $98 from $79 at KeyBanc

Investing.com - KeyBanc raised its price target on Primoris Services Corporation (NYSE:PRIM) to $98.00 from $79.00 on Wednesday, while maintaining an Overweight rating on the stock.

The price target increase represents a significant 24% upside from the previous target, reflecting KeyBanc’s positive outlook on the infrastructure services company.

KeyBanc cited Primoris’s dominant positioning in utility-scale solar and storage in key geographies as a major factor in the upgrade, noting that the final version of the OBBB came in "better than feared."

The firm highlighted Primoris’s steady growing power delivery business with improving profitability, along with its "underappreciated role" in data center capital expenditures from fiber networks to energy generation and transmission and distribution.

KeyBanc expects Primoris to experience a continued end market mix shift toward faster-growing segments, which should result in margin and multiple expansion over the coming years, according to the firm’s analysis. The company currently trades at a P/E ratio of 22.14, with analyst price targets ranging from $67 to $110, suggesting significant potential upside from current levels.

In other recent news, Primoris Services Corporation reported strong financial results for the first quarter of 2025, surpassing earnings expectations with an earnings per share (EPS) of $0.98 compared to the forecasted $0.60. The company also exceeded revenue projections, achieving $1.65 billion against an expected $1.49 billion. Jefferies has responded to these results by raising its price target for Primoris Services to $100 from $83, maintaining a Buy rating and noting the company’s strong market position. In another development, Primoris appointed Baker Tilly as its new independent registered public accounting firm following a merger involving its previous auditor, Moss Adams LLP. This change was confirmed in a recent SEC filing, with no disagreements reported between Primoris and Moss Adams on financial matters. Additionally, analysts from KeyBanc Capital Markets highlighted that a draft budget reconciliation bill could have a near-term positive impact on renewable-linked engineering and construction stocks like Primoris Services. The company continues to focus on renewable energy and infrastructure projects, positioning itself for sustained growth in these sectors.

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