B.Riley FBR Assigns a Buy Rating on Granite Construction Inc

By Carrie Williams

In a report released today, Alex Rygiel from B.Riley FBR assigned a Buy rating to Granite Construction Inc (NYSE: GVA), with a price target of $76. The company’s shares opened today at $58.65.

Rygiel commented:

“This morning, 2/14, Granite Construction (GVA-Buy, $76 PT) announced it will acquire Layne Christensen Company (LAYN) in a transaction valued at $565 million. We believe this acquisition is in line with GVA’s diversification strategy, especially into water/waste water infrastructure, which the company has been interested in for several years. The acquisition is expected to be accretive to adjusted EPS in the first year after the close including expected synergies. The two companies are in the process of putting together an integration team and will provide more specific details of the combined business, growth outlook, and estimates as they approach the expected closing in 2Q18. Granite will announce 4Q17 results on Friday morning, 2/16.”

According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 14.4% and a 68.2% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Jacobs Engineering, Tutor Perini Corp, and Quanta Services.

Granite Construction Inc has an analyst consensus of Moderate Buy, with a price target consensus of $80.50.

Granite Construction Inc’s market cap is currently $2.39B and has a P/E ratio of 46.57. The company has a book value ratio of 2.6179.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GVA in relation to earlier this year. Most recently, in December 2017, James Bradford, a Director at GVA bought 1,146 shares for a total of $42,998.

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Granite Construction, Inc. operates as a holding company, which provides infrastructure solutions for public and private clients. It operates through the following business segments: Construction, Large Project Construction and Construction Materials.