UPDATE: Goldman Sachs Starts Primoris Services Corporation (PRIM) at Neutral

Goldman Sachs analyst Jerry Revich initiates coverage on Primoris Services Corporation (NASDAQ: PRIM) with a Neutral rating and a price target of $35.00.

The analyst comments "We initiate coverage on Primoris (PRIM) - a diversified engineering & construction contractor - with a Neutral rating and a $35 12-month price target. Primoris has successfully derisked its legacy portfolio over the past 5+ years, and we are positive on the company's more recent expansion into higher margin and growth solar and telecom end markets. We see the most attractive growth outlook for Primoris's solar business that now accounts for ~15% of sales - built up organically from $0 within the past five years - where the limit to growth is the pace of project team additions. We also see steady growth in electric and telecom utility businesses (~20% of sales). However, Primoris's Pipeline, Civil and Industrial/Engineering businesses (~40% of sales) face a challenging outlook, driving our Neutral rating on the stock. We see 5% upside to consensus EPS over the next two years driven by higher margin forecasts."

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 $31.51 yesterday.

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