UPDATE: Morgan Stanley Starts Perimeter Solutions SA (PRM) at Overweight on Wildfire Driven Pricing Power

Morgan Stanley analyst Connor Lynagh initiates coverage on Perimeter Solutions SA (NYSE: PRM) with a Overweight rating and a price target of $14.00. Perimeter is a manufacturer and distributor of specialized chemicals focused on two areas: Fire Safety (~70% of revenues) and Oil Additives (30% of revenues). Within Fire Safety, the company is a sole-source supplier to many key firefighting agencies, and its incumbency advantage and small share of total suppression costs giving it the opportunity for substantial pricing power.

The analyst stated "While year-to-year outcomes are volatile, there is a long-term trend of increasing wildfire management spending in many regions — particularly on the US West Coast, where Perimeter has a dominant market position. The recently increasing prevalence of wildfires, coupled with a secularly growing wildlife-urban interface (i.e., more buildings in at-risk areas), drives a need for continued fire control efforts."

For an analyst ratings summary and ratings history on Perimeter Solutions SA click here. For more ratings news on Perimeter Solutions SA click here.

Shares of Perimeter Solutions SA closed at $11.77 yesterday.

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