
Limbach Holdings (LMB) Stock Forecast & Price Target
Limbach Holdings (LMB) Analyst Ratings
Bulls say
Limbach Holdings Inc. is experiencing a transformative shift, as evidenced by a significant 21% year-over-year growth in revenue from its Owner Direct Relationships (ODR) segment, while the General Contractor Relationships (GCR) segment faced a decline of 25%. The company's robust backlog, which increased by 53% year-over-year in the fourth quarter of 2024, supports optimistic expectations for continued ODR growth, bolstered by geographic expansion, service diversification, and opportunities in the healthcare sector. This strategic transition towards higher-margin, recurring revenue projects is expected to enhance EBITDA margins and overall financial stability, allowing Limbach to capitalize on growth opportunities, including mergers and acquisitions.
Bears say
Limbach Holdings Inc faces several fundamental challenges that contribute to a negative outlook for its stock. The company's Owner Direct Relationships segment, which is its primary revenue generator, shows gross margins around 31%, significantly lagging behind competitors' margins of 35-40%, indicating potential operational inefficiencies. Additionally, systemic risks such as ongoing transformation challenges, potential declines in the non-residential construction market, and a competitive bidding environment raise uncertainties regarding revenue growth prospects, particularly in light of guidance predicting a decline in General Contractor Relationships revenue.
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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