DA Davidson raises Granite Construction stock price target to $125

Published 08/08/2025, 11:50
DA Davidson raises Granite Construction stock price target to $125

Investing.com - DA Davidson raised its price target on Granite Construction (NYSE:GVA) to $125.00 from $108.00 on Friday, while maintaining a Buy rating on the construction materials company. The stock, which has surged over 9% in the past week and 47% over the last year, is currently trading above its InvestingPro Fair Value.

The price target increase reflects recent acquisitions that proportionately increase Granite’s materials and aggregates-derived revenue and profits, according to the research firm. DA Davidson noted that the company’s updated 2027 financial framework suggests an attractive earnings trajectory. The company has demonstrated strong execution with 11.4% revenue growth in the last twelve months and maintains a "GREAT" financial health score according to InvestingPro analysis.

The firm revised its estimates based on deal contributions and applied a multiple of 12x/10x to its 2025/2026 EBITDA estimates, which include partial-year contributions from recent transactions in 2025.

Granite Construction recently updated its 2027 financial framework, increasing its EBITDA margin and cash flow margin ranges by 50 basis points to reflect the impact of recent transactions.

Based on organic growth ranges of 6%-8% plus acquisition contributions into 2026, DA Davidson projects Granite could generate approximately $660 million to $795 million in EBITDA by 2027, representing a 6.5x-8.0x multiple at the current share price, or $340 million to $465 million in free cash flow.

In other recent news, Granite Construction Incorporated reported its Q2 2025 earnings, revealing a strong performance with earnings per share (EPS) of $1.93. This figure surpassed analyst forecasts of $1.66 by 16.27%. However, the company faced a revenue shortfall, recording $1.13 billion compared to the expected $1.16 billion, a 2.59% miss. Despite the revenue miss, the market reacted positively to the earnings surprise. The stock experienced an increase following the announcement. These developments are part of Granite Construction’s recent performance updates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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