Primoris Services: Guggenheim Maintains Buy Rating, PT Raised to $130 from $110

Primoris Services: Guggenheim Maintains Buy Rating, PT Raised to $130 from $110

Guggenheim Securities has maintained its "Buy" rating on Primoris Services Corporation (NASDAQ: PRIM), but raised its price target (PT) to $130 from $110. The move comes following the company's strong second-quarter 2025 earnings report, which showed a 22.8% increase in share price since the earnings release on Aug. 4 [1].

Primoris Services reported adjusted earnings per share (EPS) of $1.68 and revenues of $1.89 billion, beating the Zacks Consensus Estimate by 58.5% and 12.3%, respectively. Year-over-year, the metrics rose by 162.5% and 20.9%, driven by growing demand for infrastructure solutions across power generation, electric utility, and data centers throughout North America [1].

The company's positive outlook has been bolstered by several factors, including federal and state initiatives supporting public infrastructure demand, a strong backlog of $11.49 billion, and a balanced capital allocation approach. Guggenheim's PT increase reflects the company's potential to capitalize on these trends and maintain its momentum [2].

Primoris Services has also boosted investor confidence by lifting its 2025 adjusted EPS and adjusted EBITDA guidance. It now expects adjusted EPS between $4.90 and $5.10 and adjusted EBITDA between $490 million and $510 million [1].

The stock has seen a premium valuation compared to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 22.28. Despite this, Guggenheim's positive outlook suggests that investors may find value in the stock's long-term growth prospects [1].

Guggenheim's decision to maintain a "Buy" rating and raise its PT reflects the company's strong fundamentals and the potential for continued growth in the infrastructure sector. Investors should closely monitor the company's performance and the broader market trends to make informed decisions.

References:
[1] https://www.nasdaq.com/articles/primoris-services-stock-228-q2-earnings-buy-or-wait
[2] https://www.marketbeat.com/instant-alerts/primoris-services-co-nasdaqprim-given-consensus-recommendation-of-moderate-buy-by-brokerages-2025-08-18/