Arcosa’s Price Target Boosted at DA Davidson
DA Davidson analysts increased their price target for Arcosa (NYSE:ACA) to $105 from $95, maintaining their Buy rating on the stock. The new target is based on a 13x and 12x multiple of projected EBITDA for 2024 and 2025, respectively.
The updated estimates take into account partial contributions from the recent Ameron acquisition and anticipate a second-half increase in wind deliveries that should persist into 2025 and beyond. Additionally, improving barge visibility and backlog, alongside the aggregate segment's strong margins, provide opportunities for growth as infrastructure and construction activities pick up.
The analysts believe that the company's growth potential, leverage to infrastructure investment, and steady cash flow position it favorably, which supports the continued Buy recommendation.
| Symbol | Price | %chg |
|---|---|---|
| CMNP.JK | 1495 | 0 |
| BIPI.JK | 67 | 0 |
| META.JK | 238 | 0 |
| TEBE.JK | 680 | 0 |
Arcosa Review Following Recent Q4 Earnings Release
Analysts at Berenberg Bank provided their views on Arcosa, Inc. (NYSE:ACA) following the company’s recently announced Q4 results (Feb 23). The earnings came in better than expected but the company’s 2022 adjusted EBITDA guidance was slightly below the Street expectations. While the company has suffered from a series of negative earnings revisions throughout much of 2021, the analysts note the outlook provided seems to indicate a trough in the company’s more cyclical business lines.
Consequently, the analysts expect the company will begin benefitting from some positive earnings momentum, especially once the recovery in barge/wind towers begins in earnest. The analysts lowered their price target on the company’s shares to $64 from $66, mainly on the back of their lower estimates, but maintain their Buy rating as they believe the company remains a deeply undervalued story.
