PRIM Stock On Track For Worst Day In Over A Year – This Analyst Says It’s Becoming ‘Tough To Defend’ Primoris Following Forecast Cut

KeyBanc said it wants to see a "clear picture" of the underlying renewables business before recommending the company’s shares to investors.

• KeyBanc downgraded the PRIM stock to “Sector Weight” from “Overweight” and currently has no price target.
• Primoris roughly halved its 2026 adjusted earnings per share outlook to $2.05-$2.60.
• Renewables business revenue was guided to $2.1 billion for the year, down from the $3 billion earned last year.

Shares of Primoris Services Corporation (PRIM) crashed in premarket trade on Tuesday after KeyBanc Capital Markets downgraded the North American engineering, procurement, and construction company following a lowered full-year forecast and the departure of a major C-suite member.

At the time of writing, PRIM stock was down more than 37% and on track to open at a more-than-one-year low if session losses hold.

KeyBanc Struggles To Defend PRIM

The firm said it has become tough to defend Primoris after the company cut forecast, which it highlighted as “its fourth negative update in a row,” TheFly reported. It downgraded PRIM stock to “Sector Weight” from “Overweight” and currently has no price target.

On Monday, after the closing bell, the company flagged that its renewables business is facing challenges and higher operating costs, which are delaying the completion of certain projects. However, CEO Koti Vadlamudi tried to cheer investors by touting the $2 billion backlog in the energy business, while also trying to mask the abrupt exit of operating chief Jeremy Kinch.

Clear Picture Needed

KeyBanc said it wants to see a "clear picture" of the underlying renewables business and "steps to right the ship become evident" before recommending the shares to investors. The firm is not confident in Primoris' outlook, given the magnitude of the guidance cut.

For 2026, the renewables business revenue was guided to $2.1 billion, lower than the $3 billion earned last year. Overall, the adjusted earnings per share outlook was roughly halved to $2.05-$2.60 from $4.80-$5.00, coming much below the $4.59 per share consensus estimate polled by Fiscal AI.

Wells Fargo analyst Jerry Revich also chimed in, expressing concerns over further losses on the company’s four projects while continuing to expect risk of higher project losses in the second half of the year, per TheFly. The firm has a price target of $85, down from $118, implying downside potential of more than 21% based on the stock’s last closing price.

What Do Retail Traders Think About PRIM?

On Stocktwits, retail sentiment toward PRIM stock turned ‘bullish’ from ‘bearish’ over the last 24 hours, amid ‘high' message volumes. 

One user on the platform cheered the company’s energy backlog.

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Another user expressed frustration over the company’s execution, despite a strong backlog of orders.

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PRIM stock has fallen nearly 13% so far this year but surged more than 42% over the last 12 months.

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