
Construction Partners (ROAD) Stock Forecast & Price Target
Construction Partners (ROAD) Analyst Ratings
Bulls say
Construction Partners Inc. has demonstrated strong growth, with a record backlog of $3.0 billion at the end of FY24, reflecting a 55% year-over-year increase, largely driven by ongoing bookings and cumulative value contributions from subsidiary projects. The company reported substantial improvements in financial performance, highlighted by a 90% increase in gross profit and a 120% increase in EBIT year-over-year. With an anticipated growth rate of 7%-8% through FY26-FY30 and plans to reduce net debt/TTM EBITDA from 3.1x to 2.5x by late 2026, the overall outlook for Construction Partners's stock remains positive.
Bears say
Construction Partners, Inc. faces significant financial uncertainties due to the impacts of weather and seasonality on its infrastructure projects, which can lead to extended project timelines and negatively affect profit margins. The company's labor-centric cost structure, which constitutes approximately 20% of total costs, poses additional challenges in a tight labor market, potentially constraining both margins and growth prospects. Furthermore, the risk of adverse effects from customer loss and potential mismanagement in acquisitions raises concerns regarding overall sales and earnings stability.
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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