Professional
Added to YB: 2025-01-24
Pitch date: 2025-01-22
ROAD [bearish]
Construction Partners, Inc.
-32.9%
current return
Author Info
Spruce Point Capital Management is an activist investment manager specializing in forensic short-selling. Sign up for the newsletter.
Company Info
Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas.
Market Cap
$6.4B
Pitch Price
$85.17
Price Target
46.00 (-60%)
Dividend
N/A
EV/EBITDA
14.38
P/E
44.65
EV/Sales
2.37
Sector
Construction and Engineering
Category
value
Spruce Point Capital Management Issues 'Strong Sell' Research Opinion On Construction Partners, Inc. (Nasdaq: ROAD)
ROAD short: Concerns over organic growth, FL DOT contract declines, TX expansion risks. Poor transparency, high DSOs, weak FCF/ROCE trends. Aggressive backlog reporting, reserve disclosure issues. Overvalued vs peers at 3.4x leverage. 35-50% downside risk ($46-$60/share).
Read full article (17 min)