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

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Events for the Week of Sept. 8-12
Granite Construction To Add $31M To Q2 Backlog - Analyst Blog

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
Dec 2013DA DavidsonMaintainsNeutral
Dec 2013Goldman SachsUpgradesNeutralBuy
May 2013Goldman SachsUpgradesSellNeutral

View More Analyst Ratings for GVA
View the Latest Analyst Ratings

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

 

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