Why Argan Stock Swooned by Almost 8% Today

Argan (AGX) shares dropped nearly 8% after Piper Sandler analyst Dimple Gosai initiated coverage with an underweight rating and a $273 price target—32% below the stock's current trading level. Gosai flagged capacity constraints as a key concern, arguing that AGX is approaching limits on available work crews. The analyst also believes the current project award cycle has peaked, despite continued investor enthusiasm around the company's exposure to AI data center construction. The underweight call challenges the bullish thesis that has fueled AGX's recent rally tied to surging demand for data center infrastructure supporting artificial intelligence workloads. Piper Sandler's bearish stance suggests near-term upside may be capped even as the broader AI buildout theme remains intact.