Assessing Primoris Services: Insights From 6 Financial Analysts

Ratings for Primoris Services PRIM were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $91.5, along with a high estimate of $102.00 and a low estimate of $78.00. This current average reflects an increase of 39.16% from the previous average price target of $65.75.

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Primoris Services by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Primoris Services. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Primoris Services compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Primoris Services's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Primoris Services's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Primoris Services analyst ratings.

About Primoris Services

Primoris Services Corp is a provider of infrastructure services operating mainly in the United States and Canada. It provides a wide range of construction services, maintenance, replacement, fabrication and engineering services to a diversified base of customers. The reportable segments are Utilities segment and the Energy segment. The Utilities segment operates in a range of services, including the installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communication systems. The Energy segment operates in a range of services that include engineering, procurement, and construction, retrofits, highway and bridge construction, demolition, site work, outages, pipeline construction and maintenance and others.

Understanding the Numbers: Primoris Services's Finances

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Primoris Services's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 7.82%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.54%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Primoris Services's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.4% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Primoris Services's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.41%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.99, Primoris Services faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.