Montrose Environmental Group: Strong Q3 Performance and Positive Outlook Drive Buy Rating

Needham analyst James Ricchiuti maintained a Buy rating on Montrose Environmental Group today and set a price target of $32.00.

James Ricchiuti has given his Buy rating due to a combination of factors that highlight Montrose Environmental Group’s strong performance and future potential. The company reported a significant increase in its third-quarter revenues, surpassing market expectations with a 26% year-over-year growth compared to the consensus estimate of 12%. This impressive performance was largely driven by exceptional growth in the Assessment, Permitting & Response segment, which benefited from a major emergency response project with a key energy client, leading to additional cross-selling opportunities.
Furthermore, Montrose Environmental Group’s other business segments also showed organic growth, contributing to an overall 25% year-over-year organic growth. The company has raised its 2025 outlook for the third time this year and has provided a positive forecast for 2026 that aligns with market expectations. Ricchiuti believes that the company’s resilient and profitable business model will become increasingly attractive to investors, potentially driving the stock price higher. As a result, he has reiterated a Buy rating and increased the price target to $32 from $31.