Primoris Services Corp (PRIM) Upgraded by JPMorgan, Raises Price Target to $102

JPMorgan has raised its price target for Primoris (PRIM) from $90 to $102 and maintained an Overweight rating. The firm cites strong end market demand as a key factor. Analysts forecast an average target price of $93.10 with an upside of 5.60% from the current price. The estimated GF Value for Primoris Services Corp in one year is $44.74, suggesting a downside of 49.25% from the current price.

JPMorgan has raised its price target for Primoris Services (PRIM) from $90 to $102, maintaining an "Overweight" rating. This significant 13.33% increase in the price target reflects the analyst's confidence in the stock's potential. The firm cited strong end market demand as a key factor driving this upward revision.

According to the latest analyst forecasts, the average one-year target price for Primoris Services Corp (PRIM) is $93.10, indicating an upside of 5.60% from the current price of $88.16. The high estimate of $110.00 and the low estimate of $67.00 further underscore the diverse views among analysts. The consensus recommendation from 11 brokerage firms is "Outperform," with a rating scale where 1 signifies a "Strong Buy" and 5 denotes a "Sell."

GuruFocus estimates the GF Value for Primoris Services Corp (PRIM) in one year to be $44.74, suggesting a potential downside of 49.25% from the current price. The GF Value is calculated based on the company's historical multiples, past business growth, and future performance estimates.

The increase in the price target comes amidst a broader trend of infrastructure spending, driven by the energy and utility sectors. The U.S. is embarking on a multi-trillion-dollar, multi-decade infrastructure spending boom, with significant focus on energy, utilities, AI data centers, and more. This trend is expected to continue, providing substantial growth opportunities for companies like Primoris Services.

Primoris Services, a specialty contractor providing engineering, construction, and maintenance services for critical infrastructure across utilities, energy, and renewables, has seen strong revenue growth. The company's revenue grew from under $500 million in 2009 to $6.4 billion in 2024, including a 22% average sales growth in the past three years. The company's earnings have also expanded significantly during this period.

The company's core segments, Utilities and Energy, are well-positioned to benefit from the ongoing infrastructure spending boom. With a $11.4 billion backlog at the end of the first quarter of 2025, Primoris Services is poised to continue its growth trajectory. The company's earnings are projected to grow by 16% in FY25 and 14% in FY26, following a 37% EPS expansion in 2024.

In summary, JPMorgan's upward revision of the price target for Primoris Services (PRIM) reflects the analyst's positive outlook on the company's growth prospects. The strong end market demand, coupled with the broader infrastructure spending trend, positions Primoris Services for continued success.

References:
[1] https://www.gurufocus.com/news/2992842/prim-jp-morgan-raises-primoris-services-price-target-to-102-prim-stock-news
[2] https://www.nasdaq.com/articles/bull-day-primoris-services-corporation-prim
[3] https://www.gurufocus.com/news/2984852/analyst-reiterates-buy-rating-for-primoris-services-prim-prim-stock-news