News Flash: Analysts Just Made A Substantial Upgrade To Their Construction Partners, Inc. (NASDAQ:ROAD) Forecasts

Celebrations may be in order for Construction Partners, Inc. (NASDAQ:ROAD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 7.8% to US$81.77 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from Construction Partners' five analysts is for revenues of US$2.4b in 2025 which - if met - would reflect a sizeable 36% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 36% to US$1.81. Before this latest update, the analysts had been forecasting revenues of US$2.1b and earnings per share (EPS) of US$1.79 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

View our latest analysis for Construction Partners

The consensus price target increased 27% to US$85.60, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Construction Partners' rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 19% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Construction Partners is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Construction Partners.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Construction Partners analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Construction Partners Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.