Stock Price & Analysis

Buy PRIM stock as analysts have set a $73 target and the company has strong earnings momentum. Sell PRIM stock if you are risk-averse due to recent leadership changes and market volatility.

PRIM stock is predicted to reach $68 in 2025, supported by Fibonacci resistance levels and current price action. The stock is trading near its pivot point of $64.11, with resistance at $68.10 and support at $60.12.

The S1 support level for PRIM Stock is $60 ,The R1 resistant level for PRIM Stock is $66.91.

As of the end of day on 2025-03-24, the price of PRIM Stock was $65.43.

The target price for PRIM Stock according to analyst rating is 95.00, with the highest price target at 110.00 and the lowest at 85.00. Analysts have a Strong Buy rating on PRIM Stock overall.

The market cap of PRIM is $3.4B.

Analysis and Insights

Valuation Metrics

PRIM's valuation metrics suggest potential overvaluation. The P/E ratio has increased steadily, from 16.06 in Q1 2024 to 23.05 in Q4, indicating a premium relative to earnings growth. Similarly, the EV/EBITDA ratio has risen to 10.55, and the P/S ratio is at 2.91, both signaling elevated valuations compared to historical levels.

Financial Performance

While revenue has grown consistently, net income and gross profit margins have shown variability. The net margin has improved slightly but remains moderate at 10.6%. The dividend yield has declined to 0.34%, reflecting reduced returns to shareholders.

Market Sentiment

Analysts maintain a positive outlook, with price targets ranging from $73 to $102, suggesting confidence in PRIM's growth. However, the stock recently fell below its 200-day moving average, indicating short-term technical weakness.

Event Impact

The leadership transition, with the CEO's departure and an interim appointment, introduces uncertainty. The stock's minimal reaction to the COO promotion and mixed Q4 earnings suggests investor caution.

Conclusion

While PRIM's fundamentals are strong, its rising valuation metrics and technical weakness indicate overvaluation. Investors should monitor earnings consistency and market sentiment before committing.

Primoris Services Corporation is engaged in providing of infrastructure services. The Company provides a range of construction, maintenance, replacement, fabrication, and engineering services to a diversified base of customers through its two segments: Utilities, and Energy. The Utilities segment offers services, including the installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communications systems. The Energy segment operates throughout the United States and Canada and specializes in a range of services that include engineering, procurement, construction, retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, pipeline construction and maintenance, pipeline integrity services, and maintenance services for entities in the renewable energy and energy storage, renewable fuels, and petroleum and petrochemical industries.

The price prediction for PRIM stock by 2030 is approximately $135 per share. This forecast is based on the company's strong earnings performance, with Primoris Services recently reporting quarterly earnings of $1.13 per share, beating consensus estimates by 54.79%, and revenues of $1.74 billion, surpassing expectations by 10.25%. The company's consistent ability to exceed earnings estimates and its position in the growing construction and infrastructure sector support this bullish outlook.

PRIM has a total of 2773 employees.