UPDATE: DA Davidson Downgrades Granite Construction to Neutral; Valuation Full in Near Term
DA Davidson lowered its rating on Granite Construction (NYSE: GVA) from Buy to Neutral with a reiterated $30 price target.
DA Davidson noted, "[T]he shares are now trading at a substantial premium to peers based on our estimates for EPS and EBITDA, which are unchanged. A portion of the premium can be justified by the company's historical growth and competitive advantages, including large project capabilities and local experience, as well as the incremental value in the company's aggregates reserves. However the current premium appears to leave modest near-term upside potential relative to our $30 price target."
Granite Construction closed at $28.07 on Monday.
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