
Construction Partners (ROAD) Stock Forecast & Price Target
Construction Partners (ROAD) Analyst Ratings
Bulls say
Construction Partners Inc. has demonstrated robust financial growth, highlighted by a record backlog of $3.0 billion at the end of F4Q, representing a 55% year-over-year increase, which indicates strong demand for its civil infrastructure services. The company has reported significant improvements in gross profit and EBIT, up 90% and 120% year-over-year, respectively, underscoring its operational efficiency and increased bookings in key markets. Furthermore, the company's strategic focus on acquiring additional revenue streams through low bid projects and a target to reduce net debt to TTM EBITDA from 3.1x to 2.5x by late 2026 positions it favorably for sustained growth in the upcoming years.
Bears say
Construction Partners, Inc. is experiencing heightened uncertainty in its financial outlook due to the volatility caused by weather and seasonality, which may adversely affect project timelines and margins. The company's labor-centric cost structure, accounting for approximately 20% of total costs, raises concerns about profitability growth amid a tight labor market that could limit its ability to secure necessary workforce talent. Furthermore, the risk related to potential overpayment for acquisitions or integration failures could negatively impact the company's overall financial performance and shareholder value.
This aggregate rating is based on analysts' research of Construction Partners and is not a guaranteed prediction by Public.com or investment advice.
Construction Partners (ROAD) Analyst Forecast & Price Prediction
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