Stock Price & Analysis

Based on the recent price action and technical analysis, ROAD stock appears to be in a bearish trend with significant downside pressure. The stock has dropped from $77.65 to $73.11 (-4.94%) in the latest trading session [Relevant Data], indicating strong selling momentum.

The stock has been under pressure since Spruce Point Capital Management released a critical short report on January 23, 2025, alleging potential revenue growth failures and weakening backlog. While Construction Partners strongly refuted these claims, the stock has remained volatile.

However, there are some positive fundamental factors to consider. The company recently reported strong Q1 2025 results with:

• 42% year-over-year revenue growth
• Record backlog of $2.66B
• Raised FY2025 guidance to $2.66B-$2.74B revenue

Given the current technical weakness and unresolved concerns from the short report, despite solid fundamentals, selling ROAD stock appears to be the prudent action at this time. The stock may find support around the $69-70 level based on fibonacci analysis, but further downside is possible if selling pressure continues.

Based on the provided data and recent news, here's the price prediction for ROAD stock in 2025:

The stock is expected to reach $95-100 by end of 2025, driven by the company's strong revenue guidance of $2.66B-$2.74B announced in Q1 2025 earnings. The recent acquisitions of Overland Corporation and Mobile Asphalt are expected to contribute $120M-$130M in revenue, while maintaining healthy adjusted EBITDA margins of 14.1-14.6%.

However, investors should note the recent Spruce Point report raising concerns about financial reporting transparency and potential revenue recognition issues, which could create near-term price volatility around the $73-75 level.

The S1 support level for ROAD Stock is $74.2 ,The R1 resistant level for ROAD Stock is $88.73.

As of the end of day on 2025-02-21, the price of ROAD Stock was $73.09.

The target price for ROAD Stock according to analyst rating is 102.00, with the highest price target at 102.00 and the lowest at 102.00. Analysts have a Moderate Buy rating on ROAD Stock overall.

The market cap of ROAD is $4.1B.

Based on the recent data and analysis, ROAD appears to be overvalued at current levels. The stock has experienced significant selling pressure after Spruce Point Capital released a critical report, highlighting concerns about revenue growth failures and weakening backlog quality. Technical indicators show bearish signals with RSI at 32.51 and negative MACD, suggesting downward momentum. The company's recent expansion into Texas through the $1 billion Lone Star Paving acquisition has increased leverage and potential integration risks. Recent FOIA requests indicate FDOT contract awards declined by approximately 22% in 2024, which could impact future revenue growth since Florida contributes about 14% of total revenue. The stock's current trading level around $73 appears expensive given these operational headwinds and deteriorating fundamentals.

Construction Partners, Inc. is a civil infrastructure company, which is specialized in the construction and maintenance of roadways. The Company provides a range of products and services to both public and private infrastructure projects, which focuses on highways, roads, bridges, airports and commercial and residential developments. The Company’s primary operations consist of manufacturing and distributing hot mix asphalt (HMA) for both internal use and sales to third parties in connection with construction projects; paving activities, including the construction of roadway base layers and application of asphalt pavement; site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel and construction stone, that are used as raw materials in the production of HMA and for sales to third parties; and distributing liquid asphalt cement for both internal use and sales to third parties in connection with HMA production.

Based on the provided data and recent market developments, here's a price prediction analysis for Construction Partners (ROAD) stock by 2030:

Current Market Position: The stock is currently trading at $73.11 as of February 21, 2025, showing a significant decline of -4.94% in the regular market session [Relevant Data].

Growth Catalysts and Financial Outlook:

• According to recent earnings reports, Construction Partners has outlined strong growth projections:
  • FY2025 revenue target: $2.66B to $2.74B
  • Record project backlog of $2.66B
  • Strong organic growth of 11.2%
  • Adjusted EBITDA margins expected at 14.1% to 14.6%

Price Prediction 2030: $195-205 per share, driven by:

1. Robust infrastructure spending momentum and record backlog indicating sustained long-term growth
2. Strategic acquisitions expanding market presence and revenue streams
3. Improving operational efficiency with adjusted EBITDA margins trending upward from current levels

The prediction represents a compound annual growth rate (CAGR) of approximately 22-23% from current levels, supported by the company's strong market position in infrastructure construction and demonstrated ability to execute both organic growth and strategic acquisitions.

ROAD has a total of 1146 employees.