Perimeter Solutions (PRM) Surges 1.01% to 2025 High on Earnings, Analyst Upgrades

Perimeter Solutions (PRM) rose 1.01% on Thursday, extending its winning streak to six consecutive days with a cumulative gain of 19.54%. The stock hit an intraday high of $21.19, its highest level since August 2025, marking a 1.19% intraday increase. This rally follows a series of positive catalysts, including analyst upgrades and robust financial performance.

Recent analyst activity has bolstered investor confidence, with Morgan Stanley and UBS Group raising PRM’s price targets to $25.00 and $20.00, respectively, while maintaining “overweight” and “buy” ratings. These moves reflect optimism around the company’s strategic positioning in high-demand markets, particularly its fluorine-free firefighting foams and phosphorus pentasulfide (P2S5) applications in batteries and lubricants. Institutional investors, including Cullen Frost Bankers Inc. and Barclays PLC, also increased holdings in Q2 2025, signaling long-term support.

Strong earnings further fueled the stock’s ascent. PRM reported Q2 non-GAAP EPS of $0.39, surpassing estimates by 46%, and GAAP revenue of $162.64 million, up 28% year-over-year. The Fire Safety segment drove much of this growth, with a 22.1% revenue increase, while the Specialty Products segment surged 47.7%. Despite a GAAP net loss due to non-operational charges, adjusted EBITDA rose 40.6%, underscoring operational strength.

Strategic innovations, such as securing U.S. Department of Defense contracts for fluorine-free foams, and expanding P2S5 applications, have enhanced PRM’s competitive edge. However, risks remain, including reliance on government contracts and non-operational expenses. A recent downgrade by Wall Street Zen from “buy” to “hold” introduced short-term caution, though the company’s $140.7 million cash balance and disciplined capital allocation provide a buffer. Investors will continue monitoring regulatory trends and operational execution as key drivers of momentum.