Spruce Point says short Construction Partners, sees 35%-50% LT downside risk

Spruce Point announced a report and strong sell research opinion on Construction Partners (ROAD), telling investors that after conducting a forensic financial review, the firm has concerns about the long-term sustainability of the company’s business, as there have been increased pressures resulting in organic revenue growth failure. The firm says its investigation revealed evidence that contracts awarded by the company’s biggest customer have materially declined. Based on its investigation, Spruce Point estimates a 35% – 50% potential long-term downside and market underperformance risk.