Roth/MKM initiates Primoris Services stock with Buy rating on growth outlook

Published 09/10/2025, 11:14
Roth/MKM initiates Primoris Services stock with Buy rating on growth outlook

Investing.com - Roth/MKM initiated coverage on Primoris Services Corporation (NYSE:PRIM) Thursday with a Buy rating and a $170.00 price target, representing approximately 23% upside from current levels. According to InvestingPro data, PRIM currently trades near its 52-week high of $141.54, with an impressive market capitalization of $7.52 billion and a "GREAT" overall financial health score.

The research firm highlighted Primoris as a diversified engineering, procurement, and construction (EPC) company positioned to benefit from multiple industry megatrends that should drive strong revenue growth and margin expansion.

Despite PRIM stock already gaining approximately 80% year-to-date, compared to the S&P 500’s 15% rise, Roth/MKM expects continued multiple expansion for the company’s shares.

The firm based its positive outlook on three key factors: Primoris’s faster-than-peer growth rate, potential for margin improvement, and leading return-on-capital metrics compared to industry competitors.

The $170 price target represents approximately 16 times Roth/MKM’s 2026 EBITDA estimate, with the stock currently trading at roughly 14 times 2026 consensus EBITDA.

In other recent news, Primoris Services Corporation has announced the appointment of Koti Vadlamudi as its new President and CEO, effective November 10, 2025. This leadership change follows David King’s tenure as Interim President and CEO, with King continuing as Chairman of the Board. Additionally, Primoris Services has received notable attention from several research firms. GLJ Research initiated coverage with a Buy rating and a $160 price target, citing the company’s strong position in the utility capital expenditure cycle. Mizuho also began coverage, assigning a Neutral rating and a $112 price target, recognizing Primoris’s operational discipline and achievement of gross margin targets ahead of schedule. KeyBanc has raised its price target for Primoris to $129, maintaining an Overweight rating after meetings with the company’s CFO and other executives. Guggenheim increased its price target to $130, maintaining a Buy rating, following the company’s strong second-quarter 2025 financial results.

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