
Construction Partners (ROAD) Stock Forecast & Price Target
Construction Partners (ROAD) Analyst Ratings
Bulls say
Construction Partners Inc. reported a record backlog of $3.0 billion at the end of fiscal fourth quarter, representing a significant 55% year-over-year increase, indicating strong demand for its infrastructure services. The company's gross profit (GP) and earnings before interest and taxes (EBIT) exhibited remarkable growth, climbing 90% and 120% year-over-year, respectively, reflecting enhanced operational efficiency and profitability. Additionally, the positive trend in large project bidding coupled with a target to reduce net debt/TTM EBITDA from 3.1x to 2.5x by late 2026 positions the company favorably for future growth, reinforcing a promising financial outlook.
Bears say
Construction Partners, Inc. faces significant risks associated with weather and seasonality, leading to heightened uncertainty in future financial performance and potential adverse impacts on profit margins. The company's labor-centric cost structure, which constitutes approximately 20% of total costs, poses additional challenges in a tight labor market, further constraining margin and growth opportunities. Furthermore, the risk of unsuccessful acquisitions or poor integration processes could substantially undermine the company's financial results and stock performance.
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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