JPMorgan Initiates Coverage on Argan (AGX) with Neutral Rating Amid Energy Expansion

Argan, Inc. (NYSE:AGX) is one of the growth stocks that could double by 2027. On July 21, JPMorgan initiated coverage on AGX with a Neutral rating and a $220 price target, citing the company’s strong position in the engineering, procurement, and construction (EPC) space through its Gemma subsidiary.

JPMorgan Initiates Coverage on Argan (AGX) with Neutral Rating Amid Energy Expansion

A worker in a hard hat and safety gear overseeing the construction of a major energy project.

The firm sees Argan as a key player in the anticipated multi-year buildout of U.S. gas power plants, which is expected to drive the bulk of its growth. Argan’s exposure to solar-plus-storage and industrial construction adds diversification, though JPMorgan notes recent volatility tied to AI data center themes. The bank suggests a more favorable outlook could emerge if the stock experiences a meaningful pullback from current levels.

Argan, Inc. (NYSE:AGX) delivers EPC and technical services for large-scale energy projects across the U.S., Ireland, and the U.K. Its operations span power generation, industrial construction, and telecom infrastructure, serving clients in sectors ranging from utilities and manufacturing to government and technology.

While we acknowledge the potential of AGX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AGX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.