Freedom Broker Upgrades Argan to Buy on Record Quarter

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Summary · why it matters

Freedom Broker has upgraded Argan, Inc. to Buy from Hold with a $700 price target after the company reported a record second quarter for fiscal year 2027. Argan posted record revenue of $384 million, a gross margin of 19.3%, record net income of $53 million, and record adjusted EBITDA of $70 million. Analyst Sergey Glinyanov cited strong execution across major Power projects and a 29% revenue growth over the last twelve months. The company's consolidated project backlog stood at approximately $2.5 billion as of July 31, 2026, down from $2.9 billion in January, but still providing a significant base for future revenue. However, near-term headwinds include slower revenue growth in the third quarter due to pulled-forward sales, and Industrial segment gross margins fell to 7.3% due to cost overruns on a couple of projects, which may keep margins below historical levels for a quarter or two. Hedge fund interest slightly weakened, with 39 funds holding positions in the second quarter of 2026, down from 42 in the first quarter.

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Argan Inc
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Freedom Broker upgraded Argan to Buy with a $700 price target after record Q2 FY2027 revenue, net income, and EBITDA.

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