KeyBanc Downgrades Primoris Services Corporation (PRIM) to Sector Weight

KeyBanc downgraded Primoris Services Corporation (NASDAQ: PRIM) from Overweight to Sector Weight. Analyst Tahira Afzal said he was surprised by the timing of its CEO transition.

"We are downgrading PRIM from OW to Sector Weight - we view PRIM’s backlog and market positioning within the North American Industrial market to still carry potential from a longer-term perspective. That said, we are moving to the sidelines until we have comfort around PRIM’s ability to deliver consistent operational performance under its new leadership, given the potentially more challenging energy construction macro environment," said Afzal.

"While we have viewed a CEO transition for PRIM as an eventuality, we are surprised by the timing as the Company progresses through a transient earnings air pocket. We believe David King’s roughly one year of experience at PRIM brings some comfort around continuity, but we would have preferred to have seen a transition announcement post the current difficult period for PRIM," added the analyst.

For an analyst ratings summary and ratings history on Primoris Services Corporation click here. For more ratings news on Primoris Services Corporation click here.

Shares of Primoris Services Corporation closed at $18.96 yesterday.

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