Baird Upgrades Construction Partners Inc (ROAD) to Outperform

Baird analyst Andrew Wittmann upgraded Construction Partners Inc (NASDAQ: ROAD) from Neutral to Outperform with a price target of $122.00 (from $112.00).

The analyst comments: "We estimate that ROAD's recent large acquisitions in Texas and Tennessee are larger and higher margin than previously thought, while the strong organic growth and excellent G&A leverage are also benefiting margins. Together our estimates get a sizable increase well above consensus and make the share's more attractive. Also, FCF is improving, aided by 100% bonus depreciation, which helps ROAD's M&A economics nicely. Finally, we suspect ROAD will outline new long-term financial targets soon as it has achieved its prior targets ~two-years ahead of schedule, a potential catalyst."

For an analyst ratings summary and ratings history on Construction Partners Inc click here. For more ratings news on Construction Partners Inc click here.

Shares of Construction Partners Inc closed at $104.59 yesterday.

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