
Limbach Holdings (LMB) Stock Forecast & Price Target
Limbach Holdings (LMB) Analyst Ratings
Bulls say
Limbach Holdings Inc has demonstrated a robust transformation, with Owner Direct Relationships (ODR) revenue growing by 21% year-over-year, underscored by a significant backlog increase of 53% year-over-year in the fourth quarter of 2024. The company's strategic focus on geographic expansion, enhanced service offerings, and capital project work positions it well for sustainable growth and margin expansion, particularly as it transitions to higher-margin ODR projects. This repositioning towards smaller, less-cyclical projects not only strengthens financial performance but also provides Limbach with the financial capacity to invest in growth initiatives, including mergers and acquisitions to enhance its service offerings and geographical footprint.
Bears say
Limbach Holdings Inc. faces a negative outlook primarily due to several operational and market risks that could hinder its growth potential, particularly in its General Contractor Relationships (GCR) segment, which is projected to experience a revenue decline of approximately 10% at the midpoint. Additionally, the company’s Owner Direct Relationships (ODR) segment, while offering expected growth, shows a gross margin of about 31%, significantly lower than competitors' margins, such as Trane and Johnson Controls, which average between 35% and 40%. Furthermore, the ongoing transformation challenges, difficulties in expanding service offerings, and an uncertain non-residential construction environment all contribute to potential headwinds for Limbach Holdings’s financial performance moving forward.
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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