Construction company Granite Construction (GVA) has received a $16 million bid-build rehabilitation contract from the Alaska Department of Transportation and Public Facilities in Anchorage for three taxiways at Anchorage International Airport (AIA).
The company is a heavy civil general contractor and undertakes infrastructure projects for airports, dams, roads, bridges, highways, tunnels, and mass transit facilities.
The contract requires Granite to cold plan and replace 60,000 tons of asphalt pavement, improve storm drains, treat asphalt surface, as well as improve and replace taxiway signage and lighting. Notably, 60,000 tons of hot-mix asphalt will be supplied by the company’s Lang Street Hot Plant.
Granite Construction is likely to commence the rehabilitation work in July 2021 and complete it by September 2022. (See Granite Construction stock chart on TipRanks)
Derek Betts, Granite Construction regional Vice-President said, “This project is a great win for our fixed hot plant facility in Anchorage. Milling and paving is a core part of our business, so this project is a perfect fit for our strengths here in Alaska.”
D.A. Davidson analyst Brent Thielman recently upgraded his rating on the stock to Buy from Hold with a price target of $55 (31.7% upside potential).
At Granite Construction’s first-quarter earnings call held on May 8, Thielman asked if the company will be able to complete the majority of the projects received within the Specialty and Water segments this year?
Kyle Larkin, President of Granite Construction, responded to Thielman’s question and said the company expects the Specialty segment contracts to convert relatively quickly.
Overall, the stock has a Hold consensus rating based on 1 Buy and 1 Sell. The average Granite Construction analyst price target of $42.00 implies that shares are fully valued at current levels. The company’s shares have gained 125.1% over the past year.
According to TipRanks’ Smart Score rating system, Granite Construction scores a 4 out of 10, suggesting that the stock is likely to perform in line with market averages.
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