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