UPDATE: Sterne Agee Raises PT to $30 on Granite Construction on Award Winss, Accretive Acquisition

Sterne Agee reiterated its Underperform rating on Granite Construction (NYSE: GVA) but raised its price target from $25 to $30.

Sterne Agee noted, "We support Granite's accretive (exc. transaction costs) acquisition into diversified markets, notably key Power and Water markets. Synergies should include additional self perform on heavy civil power work and stronger bonding capacity to pursue larger projects. … We are increasing our 2014 EPS estimates to $2.65 from $2.20 to reflect recent new award wins including the $730 million Tappan Zee Bridge award in New York and the $300 million IH-35 Highway award in Texas. In addition, we expect incremental EPS from the Kenny acquisition in 2014 of roughly $0.20-$0.25."

Granite Construction closed at $33.62 on Monday.

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