B. Riley upgraded Construction Partners (ROAD) to Buy from Neutral with a price target of $135, up from $117. The 20% selloff in the shares on crude oil fears tied to the Iran conflict has created a valuation entry point, the analyst tells investors in a research note. The firm believes Construction Partners shares are pricing in cost pressures that its analysis shows are limited to $12M of “transitory EBITDA absorption on a pass-through business model.” In addition, Riley’s industry sources suggest the next Surface Transportation bill is shaping up in the $500B-$600B range.
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