
Limbach Holdings (LMB) Stock Forecast & Price Target
Limbach Holdings (LMB) Analyst Ratings
Bulls say
Limbach Holdings Inc. has demonstrated a significant transformation in its business model, particularly highlighted by a 21% year-over-year growth in Owner Direct Relationships (ODR) revenue, alongside a substantial increase of 53% year-over-year in backlog for the fourth quarter of 2024. The company is strategically expanding its geographic footprint and service offerings, particularly within the healthcare sector, which positions it well to capture additional market share and improve margins through a greater focus on recurring, higher-margin projects. This strategic shift towards ODR not only enhances financial resilience but also provides ample capacity for future investments, including mergers and acquisitions, further bolstering its growth potential and margin expansion trajectory.
Bears say
Limbach Holdings Inc. faces a challenging outlook primarily due to the anticipated decline in General Contractor Relationships (GCR) revenue, projected to decrease by about 10% at the midpoint as organic growth in this segment lags behind the Owner Direct Relationships (ODR) segment. The company also experiences significant risks related to its ongoing transformation, difficulties in adding new service offerings, and an uncertain non-residential construction market, all contributing to its weak competitive standing in the bidding environment. Furthermore, the ODR gross margin, recorded at approximately 31%, falls significantly short of industry peers, indicating potential profitability constraints and limiting financial flexibility amid competitive pressures.
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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