Analysts have raised their price target for Granite Construction from $129.33 to $132.00, citing updated estimates for discount rate, revenue growth, profit margin, and future price-to-earnings multiples.
What's in the News
- Secured a $24 million contract from San Bernardino County to replace aging bridges along Route 66 in Amboy, California. Construction is set to begin in December 2025 and finish by April 2027 (Client Announcements)
- Awarded a $39 million contract by the U.S. Army Corps of Engineers for the first phase of the Pajaro River Flood Risk Management Project in Watsonville, California. Work will start in Fall 2025 (Client Announcements)
- Layne, A Granite Company, will construct two high-capacity horizontal collector wells for Lewis and Clark Regional Water System in South Dakota under a $13 million contract (Client Announcements)
- Won new work packages valued at $160 million and $70 million for the Garnet Valley Wastewater System project in Southern Nevada as part of a $900 million infrastructure initiative (Client Announcements)
- Granite, in joint venture with Obayashi, received a $158 million federal task order from NAVFAC for missile defense infrastructure in Guam. Work will begin in July 2025 (Regulatory Authority – Compliance)
Valuation Changes
- The Fair Value Estimate has increased slightly from $129.33 to $132.00 per share.
- The Discount Rate has risen modestly from 8.54% to 8.61%.
- The Revenue Growth projection has edged down from 10.82% to 10.80%.
- The Net Profit Margin estimate has fallen significantly from 9.60% to 8.03%.
- The future P/E (Price-to-Earnings) multiple has increased noticeably from 13.65x to 16.71x.
Disclaimer
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