Argan: AI Power Demand Has Created A New Growth Lane

I am rating Argan a strong buy rating because its record $2.9Bn backlog, debt-free balance sheet and exposure to AI-driven power demand give it rare earnings visibility. AGX's growth should be driven by backlog conversion, new power plant awards, data center-related infrastructure and margin expansion from better project execution. My price target of $886 from the current price of $720 represents a 23% upside potential. The PT is not based on multiple expansions but rather EBITDA growing into it.