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Investing.com - Jefferies has raised its price target on Primoris Services Corporation (NYSE:PRIM) to $100.00 from $83.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company has demonstrated remarkable strength with a 64.5% return over the past year and currently trades at a PEG ratio of 0.5, suggesting attractive valuation relative to its growth rate.
The investment firm expects strong momentum for Primoris heading into the second quarter of 2025, noting the company is a prime candidate to raise guidance given it is already at the higher end of its initial fiscal year 2025 guidance following solid first-quarter 2025 results. This optimism is supported by the company’s robust 12.45% revenue growth and "GREAT" financial health score, as revealed by InvestingPro’s comprehensive analysis.
Jefferies anticipates a pull-forward of utility-scale solar projects into 2026 before moderating in 2027-2028, according to its analysis of the company’s business outlook.
The firm believes other end-market momentum in data centers, gas, and transmission should more than offset any potential bumps in the renewable energy segment for Primoris.
Jefferies reiterated its Buy rating while raising the price target, projecting a 28% total return for the stock, which it notes still trades at a discount to peers in the sector.
In other recent news, Primoris Services Corporation reported strong financial results for Q1 2025, surpassing earnings expectations with an earnings per share (EPS) of $0.98, significantly higher than the projected $0.60. The company also exceeded revenue forecasts, generating $1.65 billion compared to the anticipated $1.49 billion. This growth was driven by advancements in renewable energy projects and infrastructure developments. In a strategic move, Primoris Services appointed Baker Tilly as their new independent registered public accounting firm following a merger involving their previous auditor, Moss Adams LLP.
Additionally, KeyBanc Capital Markets analysts provided insights on a draft bill affecting the energy sector, noting a mild negative to neutral impact for companies like Primoris Services. Despite the positive earnings report, the company’s stock experienced a minor decline in after-hours trading. Primoris Services Corporation remains optimistic about future growth, maintaining its full-year EPS guidance between $3.7 and $3.9. The company continues to focus on renewable energy and infrastructure projects, positioning itself to capitalize on market demand.
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