Granite Construction Inc (GVA) Received its Third Buy in a Row


After D.A. Davidson and MKM Partners gave Granite Construction Inc (NYSE: GVA) a Buy rating last month, the company received another Buy, this time from B.Riley FBR. Analyst Alex Rygiel reiterated a Buy rating on Granite Construction Inc today and set a price target of $61. The company’s shares opened today at $45.97.

Rygiel said:

“Construction announced 3Q18 results which were somewhat mixed with lower-than-expected revenue but a beat in adjusted EBITDA and EPS. Backlog was also down on a Y/Y basis, particularly within its transportation segment due to the company’s efforts to raise pricing, quicker revenue burn on smaller projects, and the timing of awards. We believe the company has taken appropriate measures to position itself to benefit from much needed infrastructure spending in the U.S. However, investors are highly focused on the outcome of Prop 6 (the repeal of SB1) in CA this November. Management, and recent news reports, suggest Prop 6 will fail by a small margin, which would be positive for GVA shares.”

According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 5.9% and a 52.6% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Tutor Perini Corp, Quanta Services, and MYR Group.

Granite Construction Inc has an analyst consensus of Strong Buy, with a price target consensus of $58.67, a 27.6% upside from current levels. In a report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $60 price target.

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Granite Construction Inc’s market cap is currently $2.16B and has a P/E ratio of 30.86. The company has a Price to Book ratio of 1.58.

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Granite Construction, Inc. is a holding company, which engages in the provision of infrastructure solutions for public and private clients. It operates through the following segments: Construction, Large Project Construction, and Construction Materials.

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