Why Argan Stock Tumbled by 4% on Tuesday
Construction and engineering company (NYSE: AGX) stumbled on the stock market Tuesday. Following news of an analyst's recommendation downgrade, investors sold out of the stock to leave it with a 4% decline over the trading session. That was a worse performance than that of the bellwether S 500 index, which eked out a marginal gain of less than 0.1%.
The pundit responsible for the downgrade was Lake Street Capital Markets' Rob Brown, who changed his Argan recommendation to hold from the previous buy. Despite the change, Brown actually boosted his price target on the construction company's stock to $150 per share from $85.
According to reports, the analyst believes that Argan's equity -- which has seen quite a run-up since the summer and has gained a whopping 220% in price year to date -- is now fairly valued. This company is benefiting from strong demand for power solutions in hot technologies such as electric vehicles and data centers.
Source Fool.com
