DA Davidson raises Arcosa stock price target to $120 on wind outlook

Published 08/08/2025, 21:24
DA Davidson raises Arcosa stock price target to $120 on wind outlook

Investing.com - DA Davidson raised its price target on Arcosa (NYSE:ACA) to $120.00 from $110.00 on Friday, while maintaining a Buy rating on the infrastructure products company. The $4.68 billion market cap company, currently trading at $95.92, shows strong financial health with a current ratio of 2.12, indicating robust liquidity. According to InvestingPro analysis, the stock appears overvalued at current levels.

The research firm increased its 2026 estimates based on expectations for more stable contributions from Arcosa’s wind business, noting that industry clarity has improved and customer inquiries have picked up.

DA Davidson highlighted improved financial visibility beyond 2024 as a key factor in its updated outlook for the company.

The firm believes these developments could enhance prospects for portfolio transformation at Arcosa, though specific details remain to be determined.

The new price target represents 13 times DA Davidson’s 2025 EBITDA estimates and 12 times its 2026 EBITDA projections for the company.

In other recent news, Arcosa Inc. reported its second-quarter earnings for 2025, exceeding analysts’ expectations for earnings per share (EPS) but missing revenue forecasts. The company achieved an EPS of $1.27, surpassing the anticipated $1.08, which represents a 17.59% surprise. However, Arcosa’s revenue was $736.9 million, falling short of the projected $760.12 million, resulting in a negative surprise of 3.05%. Additionally, DA Davidson raised its price target for Arcosa to $120.00 from $110.00 while maintaining a Buy rating. The research firm adjusted its 2026 estimates due to expectations of more stable contributions from Arcosa’s wind business, citing improved industry clarity and increased customer inquiries. These developments reflect recent activities surrounding the company.

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