Stocks are having a strong start to the week, but it's not all just high-growth tech stocks making big moves. Shares of industrial engineering and construction company Argan (AGX 15.06%) are also soaring today.
Argan shares were trading near the session high, up by 13.8% as of 12:22 p.m. ET. The move comes as one Wall Street firm upgrades the name and raises its share price target.
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AI is driving Argan's backlog higher
J.P. Morgan Chase upgraded Argan stock from a rating of neutral to one recommending shares be bought. The firm also raised its price target from $220 to $315 per share, according to reports. That new target price would represent a 25% gain from Friday's closing price.
Argan stock has now more than doubled year to date with today's move. That's been driven by strong business fundamentals. The company's backlog for energy sector projects was at a record $2 billion as of July 31. That's 43% higher than Jan. 31, 2025.
J.P. Morgan cited that, as well as Argan's strong revenue growth, as reasons for its optimistic outlook. It called Argan an "underappreciated beneficiary" of fast-growing AI-driven power demand. Argan offers its services for natural gas-fired power plants and renewable energy facilities, both of which are being used to help power data centers used for AI compute power.
The investment bank thinks the tailwinds will continue for Argan, with its backlog possibly rising "significantly over $2 billion by year-end." The race to build out AI infrastructure doesn't appear to be slowing down. Argan management was confident enough to raise its dividend by 33% last month. That gives investors a nice supplement to its sharply rising share price, too.
