D.A. Davidson Reiterates on Granite Construction, Raises PT

In a report published Thursday, D.A. Davidson & Co. analyst John Rogers reiterated a Neutral rating on Granite Construction (NYSE: GVA), raising its price target from $30.00 to $35.00.

According to the report, Improved operating performance is expected. The price target raise is based on 15x multiple of the analyst's 2015 EPS estimate of $2.30. “Although these restructuring expenses will reduce current earnings, we expect the charges will mark the near completion of the company's reorganization efforts and refocus the company on its core civil construction business,” the report said. “We continue to look for end-market demand for the industry and Granite's earnings to improve going forward (see our recent reports).”

Some highlights from the report included:

-GVA announced it has obtained temporary waivers to its revolving credit facility and senior notes to allow for violation of covenants due to charges. -Construction materials segment charges of $12-$22M for non-performing quarry sites with an aggregate carrying value of approximately $23M prior to the impairment.

GVA closed Tuesday at $34.98.