Perimeter Solutions Price Target Boosted to $20 by UBS Analyst

UBS analyst Joshua Spector has raised the price target for Perimeter Solutions (PRM) from $15 to $20, maintaining a Buy rating. Spector expects less severe impacts from tariffs to boost downstream companies, but notes challenges for the commodity sector due to declining demand patterns. The average one-year price target is $16, with a high estimate of $17 and a low estimate of $15. The average brokerage recommendation is 2.0, indicating "Outperform" status. The estimated GF Value is $12.48, suggesting a downside of 18.32% from the current price of $15.28.

UBS analyst Joshua Spector has recently increased the price target for Perimeter Solutions (PRM) from $15 to $20, while maintaining a Buy rating. This revision reflects Spector's positive outlook on the company's ability to navigate the challenges posed by tariffs and declining demand patterns in the commodity sector. According to Spector, the less severe impacts from tariffs are expected to boost downstream companies, including those in Perimeter's portfolio.

The average one-year price target for PRM is currently $16, with a high estimate of $17 and a low estimate of $15. The average brokerage recommendation is 2.0, indicating an "Outperform" status. The estimated GF Value is $12.48, suggesting a downside of 18.32% from the current price of $15.28.

Spector's analysis highlights the resilience of Perimeter's core business, particularly its U.S. Retardants segment, which is relatively unaffected by broader economic fluctuations. This segment is expected to draw increased investor interest as the wildfire season approaches. Additionally, Perimeter's disciplined M&A strategy, including the recent acquisition in the Printed Circuit Board product line, reinforces confidence in the company's ability to build value through strategic acquisitions.

While Perimeter Solutions continues to face challenges in the commodity sector, its focus on assets with recurring revenues and strong cash flow generation positions it well for sustainable performance. With solid cash reserves, the company appears well-equipped to continue adding to its portfolio in a strategic and accretive way.

References:
[1] https://finance.yahoo.com/news/morgan-stanley-highlights-stability-growth-133503552.html