In a report released today, Adam Hackel from Imperial Capital maintained a Buy rating on Construction Partners Inc (ROAD), with a price target of $14. The company’s shares closed yesterday at $11.07.
Hackel noted:
“We are maintaining our Outperform rating and our one-year price target of $14 on ROAD shares, about 26% above the recent share price. We continue to believe ROAD is likely to generate strong revenue and earnings growth through at least FY20 due to: 1) ROAD’s competitive advantages, including its vertically integrated operations, scale, and strong position in hot mix asphalt (HMA) production; 2) an extensive $575mn backlog; 3) strong growth potential both organically and through its aggressive acquisition strategy; 4) further operational improvements; and 5) healthy returns on capital vs. its peers, which we believe are sustainable. Rationale In its earnings release on 2/11/18, ROAD reported lower than expected 1Q19 results due to weather disruptions while maintaining FY19 guidance.”
Hackel has an average return of 2.6% when recommending Construction Partners Inc.
According to TipRanks.com, Hackel is ranked #3448 out of 5152 analysts.
Construction Partners Inc has an analyst consensus of Strong Buy, with a price target consensus of $13.88.
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The company has a one-year high of $14.06 and a one-year low of $7.70. Currently, Construction Partners Inc has an average volume of 90.05K.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ROAD in relation to earlier this year.
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Construction Partners, Inc. engages in construction of roadways and highways. It acquires road construction companies with services in asphalt production, paving and other construction services for both the public and private sectors. The company was founded by Ned N. Fleming & Charles E. Owens in 2001 and is headquartered in Dothan, AL.
