Goldman Sachs Turns Bearish On This Specialty Contractor Company - Read Why - Primoris Services (NYSE:PRIM)

Goldman Sachs analyst Jerry Revich downgraded Primoris Services Corp PRIM to Sell from Neutral with a price target of $24 (a downside of 5%), down from $27.
Revich cut 2022 and 2023 earnings further below consensus to reflect non-recurring pipeline project closeout benefits in 2021; lower utilities project ramp, and lower pipeline bookings.
The analyst is positive on steps management has taken to grow its new energy portfolio but sees "bottom quintile" organic growth for Primoris relative to his coverage through 2023 during the transition.
Recently, the company reported Q3 results, with a revenue decrease of 3% Y/Y to $913.2 million, missing the consensus of $991.51 million, reflecting lower revenue in the Pipeline segment.
Adjusted EPS was $0.89, beating the consensus of $0.78.
Adjusted EBITDA was $94.7 million (+8% Y/Y), margin expanded by 105 bps to 10.4%.
The total Backlog at the end of the third quarter of 2021 was $2.7 billion, with a Fixed Backlog of $1.28 billion and an MSA Backlog of $1.46 billion.
FY21 Outlook: Primoris expects adjusted EPS of $2.61 - $2.71.
Price Action: PRIM shares are trading lower by 5.13% at $25.16 on the last check Thursday.

Goldman Sachs Turns Bearish On This Specialty Contractor Company - Read Why