Wedbush Maintains Primoris Services (PRIM) Neutral Rating
March 11, 2010 11:56 AM
Wedbush analysts Al Kaschalk and Kevin Lee maintained their Neutral Rating and $10 price target for shares of Primoris Services Corporation (Nasdaq: PRIM).
The analysts noted that Primoris Services beat Wedbush's and Wall Street's 4th quarter 2009 EPS estimates by 2 cents and 3 cents, respectively.
However, they also cautioned that low project activity and challenging economic conditions could hurt Primoris Services' financial results.
The Wedbush analysts wrote that, "even with the modest improvements in the overall economic environment, slow stimulus spend and tight corporate spending continued to impact Primoris’ top-line performance. Specifically within the company’s Construction Services segment, where revenues declined to $103.4 million from $124.3 million in the year ago period, the industrial end markets (e.g., above ground project work) were challenged, namely in California. Underground, structure, and end markets served by JCG (namely construction in the Gulf Coast) also delivered lower than expected performance during Q4."
