
Construction Partners (ROAD) Stock Forecast & Price Target
Construction Partners (ROAD) Analyst Ratings
Bulls say
Construction Partners, Inc. exhibits a robust financial outlook, underscored by a record ROAD backlog of $3.0 billion, which represents a 55% year-over-year increase, signaling strong demand and ongoing bookings gains. Notably, the company's gross profit and EBIT demonstrated significant growth of 90% and 120% year-over-year, indicating improved operational efficiency and profitability. Additionally, the projected annual revenue growth of 7%-8% through fiscal years 2026 to 2030, alongside a strategic goal to reduce net debt/TTM EBITDA to 2.5x by late 2026, highlights a positive trajectory in financial health and performance.
Bears say
Construction Partners, Inc. faces significant challenges that contribute to a negative outlook on its stock, primarily due to the company's exposure to weather and seasonality, which introduces uncertainty in future financial performance and could negatively affect margins if project delays occur. Furthermore, its labor-centric cost structure, comprising approximately 20% of total costs, raises concerns over margin compression and constrained growth prospects in the context of a competitive labor market. Additionally, potential risks associated with mismanagement in acquisitions could further jeopardize financial results and overall share 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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