On Tuesday, B.Riley maintained a Buy rating on Orion Marine Group (NYSE:ORN) and increased the price target to $12.50 from the previous $9.50.
"The rebound at Orion Group Holdings (NYSE:ORN), Inc. continues, and we highlight as one of our favorite ideas coming out of the B. Riley Investor Conference," said the analysts at the firm.
The company's recent management changes are credited with positioning it for a significant growth phase and improved profit margins in the upcoming quarters and years.
The analyst noted that the marine construction market is showing positive signs, which is evident in the company's bid pipeline expansion from $3 billion to $11 billion. This development is expected to contribute to Orion's growth trajectory. Additionally, the company's internal initiatives are anticipated to substantially improve adjusted EBITDA margins from the low single digits to the high single digits.
Orion Marine Group is also projected to join the Russell 3000 and Russell 2000 Indices, with the inclusion set to take place on June 28 after market close. This inclusion is seen as a positive step for the company's stock visibility and accessibility to a broader range of investors.
The enhancement of Orion's financial outlook is tied to the company's strategic actions and the favorable industry trends that are currently unfolding.
In other recent news, Orion Group Holdings is set to join the Russell 3000 Index starting July 1, 2024, a development that is expected to enhance investor awareness and provide more liquidity for the company's stock.
In other analyst updates, Craig-Hallum initiated coverage on Orion Marine Group with a Buy rating and a price target of $14.00, indicating that the stock is currently undervalued.
In company developments, Richard L. Daerr, Jr. will retire from Orion's Board of Directors at the upcoming Annual General Meeting of Stockholders on May 16, 2024. This will reduce the board's size from eight to seven directors. These are the most recent developments for Orion Group Holdings, a company that continues to make strides in its sector.
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