Limbach Holdings Surpasses Analyst Price Target of $109.33

Recently, shares of Limbach Holdings Inc (Symbol: LMB) rose above the average analyst 12-month target price of $109.33, trading at $114.69 per share. When a stock meets an analyst’s target, there are typically two responses: either downgrade the valuation or raise the target price. Analysts may base their decisions on fundamental developments in the company that could be enhancing the stock price. If business conditions appear favorable, it may be time for an upward adjustment in targets.

Understanding Analyst Targets

The average target for Limbach Holdings Inc is influenced by three different analyst targets within the Zacks coverage universe. However, it is essential to recognize that this average is just a mathematical calculation. Some analysts have lower expectations, with one predicting a target price of $100. Conversely, another analyst sees a potential high of $125, leading to a standard deviation of $13.65.

The significance of examining the average price target lies in leveraging collective wisdom. This approach consolidates various expert opinions, rather than relying on a single analyst’s perspective. As LMB trades above the average target price of $109.33 per share, it signals investors to reassess the company’s value. They must consider whether $109.33 is merely a stepping stone toward a higher target or if the valuation has become overextended, prompting thoughts about profit-taking.

The average rating, displayed in the last row of the table, ranges from 1 to 5, where 1 signifies a Strong Buy and 5 indicates a Strong Sell. This information is sourced from Zacks Investment Research via Quandl.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.