Montrose Environmental Group (MEG) PT Lowered to $39 at Needham

Needham analyst James Ricchiuti lowered the price target on Montrose Environmental Group (NYSE: MEG) to $39.00 (from $44.00) while maintaining a Buy rating.

The analyst commented: "We are naming MEG our top pick for 2025 and add it to the Needham conviction list (replacing TDY). We believe the risk-reward opportunity for MEG is compelling at current prices. MEG shares have significantly underperformed the peer group and the broader market since the Supreme Court’s Loper Bright ruling in late June reversing the long-standing practice of courts deferring to federal agencies' interpretations of federal statutory provisions, with a further weakening following the U.S. election. We believe concerns about MEG's prospects looking to 2025 are overblown. In addition, we believe management's plan to pause M&A temporarily and redeem the A-2 preferred stock will provide a clearer view of the company’s organic growth, financial strength and cash flow generation capability."

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