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On Tuesday, Oppenheimer analysts maintained an outperform rating and a $110 price target on Arcosa stock (NYSE: NYSE:ACA), a $4.2 billion infrastructure company. According to InvestingPro data, analyst targets range from $100 to $125, with the stock currently trading near Fair Value levels. The analysts believe that recent legislative developments could be beneficial for specific sectors of the company, including Barges and Construction Products.
The analysts pointed out that the House-passed tax bill could positively impact Arcosa’s Barge and Construction Products businesses. They noted that while the bill provides some clarity and could lead to an uptick in Wind orders, the expiration of 45X credits at the end of 2027 presents challenges for the non-core Wind business.
Arcosa’s core Construction Products division is performing well, despite weather challenges on the East Coast and in Texas. The company has successfully implemented price increases at the beginning of the year and is planning further market-specific price hikes later this year.
Oppenheimer analysts emphasized the strength of Arcosa’s Construction Products segment, which remains solid amid external challenges. They reaffirmed their confidence in the company’s performance, maintaining both the outperform rating and the $110 price target.
The analysts’ comments reflect optimism about Arcosa’s ability to navigate legislative changes and market conditions, reinforcing their positive outlook for the company’s future.
In other recent news, Arcosa Inc. reported its financial results for the first quarter of 2025, showing strong performance by surpassing earnings expectations. The company reported an earnings per share (EPS) of $0.49, significantly exceeding the forecasted $0.26, marking an 88% surprise. Revenue also surpassed expectations, reaching $632 million compared to the anticipated $622.78 million, reflecting a 12% year-over-year increase. The recent $1.2 billion acquisition of Stabola contributed positively to the Utility Structures segment, which experienced double-digit volume growth. Analysts from firms such as Sidoti and Company and Oppenheimer noted the robust growth in Arcosa’s Engineered Structures segment, particularly driven by increased wind tower volumes. The company maintains a positive outlook for the remainder of 2025, projecting a full-year revenue of $2.9 billion, a 17% increase, and an adjusted EBITDA of $570 million, up 30%. Arcosa’s management highlighted the strategic importance of wind towers and ongoing infrastructure investments as key growth drivers. Despite these positive developments, the stock experienced a slight decline, reflecting broader market trends and potential investor concerns about future growth sustainability.
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