Perimeter Solutions stands to benefit as wildfires grow more frequent and threaten residential areas, as evidenced by the deadly blazes in Los Angeles earlier this year, according to UBS Securities. Analyst Joshua Spector upgraded shares of the Missouri-based fire retardant producer to buy from neutral. Spector’s $14 price target implies shares can climb 54% over the next 12 months from Tuesday’s close. “We believe recent memory of L.A. wildfires will increase the call for more ability to fight, contain and prevent wildfires,” Spector wrote to clients. “This should catalyze growth in PRM’s volumes, absent growth in acres burned, and provide more firepower to PRM’s earnings algorithm.” “[A]s wildfires wreak havoc around more populated areas (like L.A.), this could drive further demand to contain & prevent wildfires,” the analyst wrote, even while acknowledging that the total number of acres scorched by wildfires has not grown much over time. But the total volume of fire retardant used from aircraft should rise given increased investment in drop planes, which require mobile bases for reloading that are owned by Perimeter. Preventative materials made by Perimeter will also see greater demand. Spector believes Perimeter, headed by CEO Haitham Khouri, will benefit from low single-digit volume growth even if the total number of acres burned is little changed. Shares jumped as much as 16% in early Wednesday trading following the UBS upgrade. Perimeter has dropped more than 28% in 2025, creating a buying opportunity for investors, the analyst wrote. PRM YTD mountain Perimeter Solutions, year to date Perimeter Solutions was formed in 2018 when SK Capital Partners purchased the business from Israel Chemicals Ltd., and began trading on the New York Stock Exchange in Nov. 2021. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
