Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Wednesday, DA Davidson adjusted its outlook on Concrete Pumping Holding Inc (NASDAQ:BBCP), reducing the price target to $9.00 from the previous $9.50, while continuing to endorse the stock with a Buy rating. Brent Thielman, an analyst at DA Davidson, provided insights into the factors influencing this decision. According to InvestingPro data, the stock’s RSI indicates oversold territory, potentially presenting an opportunity as the stock trades 37% below its 52-week high of $9.68. He noted that the company had a challenging start to the year, which is typically a less significant quarter, with commercial weaknesses impacting results and guidance beyond the adverse weather conditions faced in the first quarter.
Thielman emphasized that despite these challenges, Concrete Pumping Holding is expected to maintain a healthy free cash flow (FCF) throughout the year, supported by extended debt maturities that provide substantial liquidity. This assessment is supported by InvestingPro data showing a strong current ratio of 1.99 and an EV/EBITDA multiple of 6.43x. The company generated $43.1 million in levered free cash flow over the last twelve months, demonstrating solid operational efficiency. Get access to 6 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
The analyst believes that any positive developments in commercial markets could offer leverage and potentially good news for the company. Thielman’s commentary underscores a view that while Concrete Pumping Holding has encountered early-year difficulties, the firm’s financial health and market position could benefit from favorable shifts in the commercial sector. InvestingPro’s Financial Health Score indicates a FAIR overall rating, with particularly strong scores in growth and relative value metrics.
Concrete Pumping Holding’s stock performance will likely continue to be monitored by investors, particularly in light of DA Davidson’s revised price target and the maintained Buy rating. The company’s ability to navigate the seasonal and commercial challenges it has faced will be critical in determining its financial trajectory for the remainder of the year.
In other recent news, Concrete Pumping Holdings reported a decline in revenue for the first quarter of 2025, dropping to $86.4 million from $97.7 million the previous year. Despite the revenue decrease, the company managed to improve its net loss to $3.1 million, or $0.06 per diluted share, compared to a $4.3 million loss, or $0.08 per share, in the previous year. The company also increased its gross margin by 200 basis points to 36.1% and reduced net debt by $33 million. Concrete Pumping Holdings revised its full-year revenue guidance to $400 million-$420 million, reflecting a cautious outlook amid commercial construction market softness. The company projects adjusted EBITDA between $105 million and $115 million and anticipates a free cash flow of approximately $60 million. CEO Bruce Young expressed optimism about a potential market recovery and highlighted the company’s focus on mergers and acquisitions. Additionally, analysts from firms like William Blair and D.A. Davidson discussed the impacts of severe weather on the company’s financial performance during the earnings call.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.