Argan Reaches New All-Time High Following JPM Upgrade

Argan (NYSE:AGX) stock surged 13.6% to a new all-time high of $294 on Monday after J.P. Morgan upgraded shares to Overweight from Neutral with a $315 price target, raised from $220. The investment firm sees Argan as an underappreciated AI play, focusing on alternative energy and construction projects. The upgrade and price target increase are a positive sign for Argan's future prospects.

Argan (NYSE:AGX) stock surged 13.6% to a new all-time high of $294 on Monday after J.P. Morgan upgraded shares to Overweight from Neutral with a $315 price target, raised from $220. The investment firm sees Argan as an underappreciated AI play, focusing on alternative energy and construction projects. The upgrade and price target increase are a positive sign for Argan's future prospects.

The upgrade comes amid a series of positive developments for Argan. The company reported impressive Q2 FY2026 earnings, with an earnings per share (EPS) of $2.50, significantly surpassing the forecasted $1.64. Despite this positive earnings surprise, the company’s revenues came in at $237.7 million, slightly below the expected $243.97 million. Additionally, Argan announced a 33% increase in its quarterly cash dividend, raising it from $0.375 to $0.50 per share, marking the third consecutive annual dividend increase. This new dividend rate translates to $2.00 per share on an annual basis.

J.P. Morgan highlighted Argan’s record backlog and robust pipeline of large-scale gas projects in the U.S., noting these factors provide strong visibility into multi-year growth and margin expansion potential for the company. The investment bank expects a series of positive catalysts ahead as new awards are booked, with backlog potentially moving "significantly over $2 billion by year-end" as management signals greater clarity on upcoming project milestones.

The upgrade also reflects a broader trend of positive analyst sentiment towards Argan. Across the recent three months, 4 analysts have shared their insights on Argan, expressing a variety of opinions spanning from bullish to bearish. The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 1 2 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 1 0 0
2M Ago 1 0 0 0 0
3M Ago 0 0 1 0 0

Analysts have set 12-month price targets for Argan, revealing an average target of $261.5, a high estimate of $315.00, and a low estimate of $220.00. Witnessing a positive shift, the current average has risen by 14.69% from the previous average price target of $228.00.