DCF to $253 in the next 5 years supports a long runway.
Construction Partners looks undervalued for a long-duration infrastructure cash-flow story, with guidance and DCF inputs implying a strong multi-year return profile.
Construction Partners runs a decentralized, acquisition-led growth model in U.S. asphalt road maintenance and construction, with recurring maintenance needs every 10 to 15 years. The key valuation argument is that it trades at about 14.9x trailing 12-month EBITDA and, using a conservative DCF based on its own growth guidance, produces a fair value of $157 and a future stock price of $253 over the next 5 years.
Target $253.006mo
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