Construction Partners price target raised to $45 from $39 at BofA

BofA raised the firm’s price target on Construction Partners to $45 from $39 and keeps a Buy rating on the shares after the company announced preliminary FY23 results above the prior outlook and provided a positive 2024 outlook at its analyst day meeting. The firm typically views an industrial company providing targets out three to four years with “a high level of skepticism given the cyclicality of end markets and the economic cycle,” but for Construction Partners BofA contends that “investors can underwrite a certain level of the targets” due to higher visibility from its high exposure to infrastructure, Southeast footprint and runway to consolidate.