Mizuho Initiates Coverage on Primoris Services with Neutral Rating and $112 PT.

Mizuho Initiates Coverage on Primoris Services with Neutral Rating and $112 PT.

Mizuho Securities has initiated coverage on Primoris Services (PRIM) with a Neutral rating and a price target of $112. The brokerage highlights the company's operational discipline and free cash flow generation, but notes that it is awaiting catalysts such as acquisitions to drive faster growth [2]. Mizuho's analysis comes amidst a broader trend of increasing demand for data centers, electrification, and grid upgrades, which is expected to drive a multi-year investment cycle in the U.S. engineering and construction sector [1].

Primoris Services, a provider of infrastructure services in the United States and Canada, has seen a variety of analyst opinions over the past three months. Nine analysts have shared their insights on PRIM, with a mix of bullish and bearish sentiments. The average price target of $113.89, with a high estimate of $130.00 and a low estimate of $98.00, reflects a 15.18% increase from the previous average price target of $98.88 [2].

The company's market capitalization is below industry averages, signaling a relatively smaller size compared to peers. Despite this, Primoris Services achieved a remarkable revenue growth rate of 20.91% in the three months ending June 30, 2025. However, its net margin of 4.46% and return on equity (ROE) of 5.66% indicate challenges in achieving strong profitability and efficient use of equity capital [2].

Primoris Services is on pace to deliver nearly $2.5 billion in renewables revenues in 2025, above its earlier outlook of $2.2-$2.3 billion. This growth is driven by strong demand in utility-scale solar and EPC work, as well as activity in battery storage projects. The company anticipates that margins in the Energy segment will pick up in the back half of the year as projects advance [3].

The Neutral rating from Mizuho reflects the company's potential for growth in the renewable energy sector, but also acknowledges the need for catalysts to drive faster growth. As the company continues to secure new awards and maintain solid bookings, investors will be watching for signs of margin improvement and further expansion in renewables.

References:
[1] https://www.investing.com/news/stock-market-news/mizuho-sees-grid-data-center-boom-driving-multiyear-upcycle-for-us-contractors-4224811
[2] https://www.benzinga.com/insights/analyst-ratings/25/09/47463123/9-analysts-have-this-to-say-about-primoris-services
[3] https://www.nasdaq.com/articles/prim-targets-25b-renewables-will-solar-growth-support-margins