Strategic Expansion and Increased Funding Boost Construction Partners’ Growth Prospects

Bank of America Securities analyst Michael Feniger has maintained their bullish stance on ROAD stock, giving a Buy rating on May 12.

Michael Feniger has given his Buy rating due to a combination of factors including the recent increase in transportation funding in Tennessee, which is expected to benefit Construction Partners significantly. The Tennessee Department of Transportation announced an additional $1.08 billion in funding, with a significant portion allocated to pavement and bridge work, aligning well with Construction Partners’ core operations.
Additionally, Construction Partners’ recent acquisition of a platform company in Tennessee enhances its presence in the state, positioning it to capitalize on the increased funding. The acquisition extends the company’s reach across Tennessee, from Knoxville to Memphis, and provides opportunities for further expansion in a fragmented market. These strategic moves, coupled with the favorable funding environment, support Feniger’s optimistic outlook for the company’s growth prospects.

In another report released on May 12, Raymond James also maintained a Buy rating on the stock with a $111.00 price target.

Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ROAD in relation to earlier this year.