Shares of Limbach Holding (LMB) are down $3.92, or 3%, to $119.92 in afternoon trading after Spruce Point said in a short report published on its website that the firm has “developed concerns over the Company’s aggressive accounting practices” after conducting a forensic financial review. The firm added: “we believe the Company’s measures of Adj. EBITDA and free cash flow are overstated by 13% and 200%, respectively, over the last twelve months, raising questions about the sustainability of its growth strategy. Based on our investigation, we estimate a 20% – 50% potential long-term downside and market underperformance risk.”
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