Argan's Momentum in the Power-Industry Services Sector Gains Analyst Attention

Argan, Inc. (AGX), a key player in the power-industry services sector, has received a significant analyst upgrade from Lake Street, shifting its rating from 'Hold' to 'Buy.' This upgrade is noteworthy not only because of the strong performance the company has exhibited in recent quarters but also due to the revised price target of $150, signaling a potential upside of approximately 13.5% from the current trading levels.

Key Takeaways:

• Lake Street has upgraded Argan from 'Hold' to 'Buy,' with a new price target of $150.

• The revised target suggests a potential upside of 13.5% from the current price of $132.075.

• Argan's recent earnings report showed significant growth in both revenue and profit, driven by its power-industry-services segment.

• With 126 'up days' and only 123 'down days,' the stock has shown resilient performance trends over the past year.

• The upgrade aligns with the company's robust financial performance and favorable market sentiment.

Analyst Upgrade and Firm Background

Lake Street, a reputable firm known for its expertise in financial analytics and investment research, has made a bold statement by upgrading Argan. The firm’s influence and track record for accurate predictions lend weight to this upgrade, suggesting confidence in Argan's strategic direction and market positioning.

Stock and Financial Performance

Argan's latest earnings report revealed a notable increase in both profit and revenue, particularly within its power-industry-services division. The company’s financials showed revenues reaching $232.474 million for Q4 2025, up from $164.554 million in the same period the previous year. This growth trajectory has been a significant factor in the positive market sentiment surrounding Argan.

Potential Upside

Based on the current price of $132.075, Lake Street's new target price of $150 implies an upside potential of approximately 13.5%. This projection reflects the analyst's confidence in Argan's ability to maintain its growth momentum and capitalize on favorable market conditions.

Relevant News and Expert Opinions

Recent news reports have highlighted Argan’s impressive performance in its latest quarter. According to a Market Watch article, Argan's shares climbed following the company's announcement of increased profits and revenues, driven by sales growth in its core segment.

In the Q4 2025 earnings call, Argan's CEO, David Watson, emphasized the company's focus on "expanding our footprint in the power industry," which aligns with Lake Street's optimistic outlook. This strategic focus is expected to further enhance Argan's competitive edge and drive future growth.

Conclusion

The upgrade from Lake Street underscores a pivotal moment for Argan as it continues to build on its strengths within the power-industry services sector. With a robust financial foundation and positive market dynamics, Argan appears well-positioned for continued success, offering investors a compelling opportunity to benefit from its potential upside.