Construction Partners stock price target raised to $110 from $100 at DA Davidson

Published 08/08/2025, 16:32
Construction Partners stock price target raised to $110 from $100 at DA Davidson

Investing.com - DA Davidson raised its price target on Construction Partners Inc (NASDAQ:ROAD) to $110.00 from $100.00 on Friday, while maintaining a Neutral rating on the stock. The company’s shares currently trade at $110.96, near their 52-week high of $114.74, after delivering an impressive 79.4% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The price target increase follows what the firm described as a "choppy quarter of weather" for the infrastructure construction company, which specializes in road and highway construction across the southeastern United States.

Despite unfavorable operating conditions during the recent quarter, DA Davidson noted that Construction Partners’ margins remained "notable" and expects a "resumption in work volume" to drive improved bottom-line earnings going forward.

The firm cited Construction Partners’ "attractive mix of growth" through both organic expansion and serial acquisitions in growth markets as positive factors, along with margins that have been trending higher in recent years.

Despite these positive attributes, DA Davidson maintained its Neutral stance on Construction Partners stock, citing current valuation concerns.

In other recent news, Construction Partners Inc. reported its third-quarter earnings for 2025, showing a significant increase in revenue but falling short of analysts’ expectations for both earnings per share (EPS) and revenue. The company reported an EPS of $0.81, missing the forecasted $0.94, and revenue of $779.3 million, below the anticipated $811.76 million. Despite these misses, strategic acquisitions and market expansion contributed to positive investor sentiment. Additionally, Baird upgraded Construction Partners’ stock rating from Neutral to Outperform, raising the price target to $122.00 from $112.00. The upgrade was based on stronger-than-expected performance from recent acquisitions in Texas and Tennessee, which are larger and generate higher margins than previously estimated. These recent developments indicate a focus on strategic growth and operational efficiency.

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