B.Riley FBR Thinks Tutor Perini Corp’s Stock is Going to Recover

By Austin Angelo

In a report released today, Alex Rygiel from B.Riley FBR maintained a Buy rating on Tutor Perini Corp (TPCResearch Report), with a price target of $18. The company’s shares closed yesterday at $11.05, close to its 52-week low of $10.06.

Rygiel noted:

“Last night after the close (8/8) Tutor Perini Corp. (TPC) released its 2Q19 results and hosted a conference call. In summary, the quarter was mired by significant non-cash goodwill impairment charges, project delays, and unfavorable performance within the Specialty Contractors segment. EPS, adj. for the GW impairment charges, was $0.18, vs. consensus of $0.47. As such, management lowered its EPS guidance from $2.00-$2.30 to $1.60-$1.80. Backlog was $11.4B (+31% Y/Y) with a book to bill of 0.8x, following 1Q new awards of $3.2B. On a YTD basis, book to bill remains strong at 2x. While we are disappointed with the quarter’s charges and weaker operational performance, 2H19 is set up to strengthen significantly and cash flow from receivables collections will finally start to roll in.”

According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 6.0% and a 56.4% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Quanta Services, and MYR Group.

Tutor Perini Corp has an analyst consensus of Moderate Buy, with a price target consensus of $20.

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Based on Tutor Perini Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $356K. In comparison, last year the company had a net profit of $24.88 million.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock.

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Tutor Perini Corp. engages in the provision of construction services. It operates though the following business segments: Civil, Building, and Specialty Contractors. The Civil segment specializes in public works construction and the replacement and reconstruction of infrastructure across the major geographic regions of the United States.