Morgan Stanley analyst Daniel Kutz maintained a Buy rating on Perimeter Solutions (PRM – Research Report) today and set a price target of $17.00.
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Daniel Kutz has given his Buy rating due to a combination of factors that highlight Perimeter Solutions’ strategic positioning and growth potential. The company’s unique portfolio, particularly its US Retardants business, is expected to gain attention as the US wildfire season approaches. This segment is largely insulated from macroeconomic trends, providing a stable earnings outlook despite potential recession risks.
Additionally, Perimeter Solutions’ M&A strategy is focused on acquiring businesses that offer recurring revenue streams, long-term growth potential, and significant free cash flow generation. Recent acquisitions, such as the bolt-on acquisition in the Printed Circuit Board product line, boost confidence in the company’s inorganic growth prospects. With a substantial cash reserve, the company is well-positioned to pursue further acquisitions, enhancing its portfolio and driving future growth.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PRM in relation to earlier this year.