Market Overview

UPDATE: Goldman Sachs Upgrades Granite Construction On Outlook of Construction Market

Share:
Related GVA
Benzinga's Top Initiations
Benzinga's Top Initiations
Chicago Bridge Sways, But Granite, Tutor and MasTec On Deck (Investor's Business Daily)

In a report published Thursday, Goldman Sachs analyst Jerry Revich upgraded Granite Construction (NYSE: GVA) from a Neutral rating to a Buy rating and raised the price target from $32.00 to $36.00.

In the report, Goldman Sachs says "We see bottoming margins, leverage to an accelerating US construction recovery, and significant upside to midcycle earnings. While our view on the US construction cycle has not changed, we now see attractive risk-reward for the stock following a healthy recalibration post a 3Q miss and mounting visibility on a US non-residential construction recovery. We estimate mid-cycle EPS of $3, potentially in 2016 driven by (1) the elimination of contract losses in a less competitive bid environment, consistent with prior cycles, (2) improved operating leverage in construction materials, and (3) SG&A leverage."

Granite Construction closed on Thursday at $30.31.

Latest Ratings for GVA

DateFirmActionFromTo
Jun 2016MKM PartnersInitiates Coverage onBuy
Apr 2016Cowen & CompanyInitiates Coverage onOutperform
Dec 2015FBR CapitalUpgradesMarket PerformOutperform

View More Analyst Ratings for GVA
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Jerry RevichAnalyst Color Upgrades Analyst Ratings

 

Related Articles (GVA)

View Comments and Join the Discussion!