Arcosa downgraded to Equal Weight from Overweight at Stephens

Stephens analyst Trey Grooms downgraded Arcosa to Equal Weight from Overweight with a price target of $65, down from $75. The analyst said the divestiture of the Storage Tanks business creates a short-term to ES margins, but this simplifies the overall business and provides capital for investment inc ore segments. Grooms noted that amid near-term margin headwinds and some demand turbulence in the medium term, combined with the stock’s recent re-rating higher and outperformance, he sees the risk/reward being more balanced.