Celebrations may be in order for Construction Partners, Inc. (NASDAQ:ROAD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Construction Partners will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 7.8% to US$81.77 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from Construction Partners' five analysts is for revenues of US$2.4b in 2025 which - if met - would reflect a huge 36% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 36% to US$1.81. Previously, the analysts had been modelling revenues of US$2.1b and earnings per share (EPS) of US$1.79 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Construction Partners

The consensus price target increased 27% to US$85.60, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Construction Partners' growth to accelerate, with the forecast 28% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Construction Partners to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Construction Partners.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Construction Partners going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Construction Partners Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.