BMO Capital Markets Reiterates Market Perform Rating, $28 PT for Granite Construction

In a report published earlier today, BMO Capital Markets reiterated its Market Perform rating and $28.00 price target for Granite Construction Inc.

. BMO Capital went on to say “The stock is trading at 6x forward EBITDA and 13x our 2013 EPS forecast. We estimate the balance sheet has $15 in net cash plus book value equipment (understated given recent increases in used equipment values) and $6 in aggregates reserves using our extraction DCF. This hard asset floor should provide support to investors, with long-term upside once the economy improves.” Granite Construction Inc. closed on Friday at $23.49.