
Limbach Holdings (LMB) Stock Forecast & Price Target
Limbach Holdings (LMB) Analyst Ratings
Bulls say
Limbach Holdings has demonstrated a robust transformation within its business model, with a 21% year-over-year growth in Owner Direct Relationships (ODR) revenue, contrasting with a 25% decline in General Contractor Relationships (GCR). The company's backlog, which has increased by 53% year-over-year in Q4 2024, underpins strong expectations for continuing growth in the ODR segment, fueled by geographic expansion and an enhanced portfolio of service offerings. The strategic shift toward ODR, which is characterized by higher margins and recurring revenue, positions Limbach for long-term financial stability and profitability, offering significant potential for EBITDA margin expansion and strategic investments for growth and geographic expansion.
Bears say
Limbach Holdings Inc faces several fundamental challenges that contribute to a negative outlook for its stock performance. The company's guidance suggests a potential decline in General Contractor Relationships (GCR) revenue, as the midpoint estimates indicate a 10% decline, while the Owner Direct Relationships (ODR) segment, which generates the majority of revenue, is experiencing gross margins that fall below industry standards at approximately 31%, compared to competitors at 35-40%. Additionally, risks related to the company's ongoing transformation, the non-residential construction outlook, and competitive bidding environments further exacerbate the financial uncertainties surrounding Limbach Holdings.
This aggregate rating is based on analysts' research of Limbach Holdings and is not a guaranteed prediction by Public.com or investment advice.
Limbach Holdings (LMB) Analyst Forecast & Price Prediction
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