Construction Partners down after Spruce Point Capital says short on company

Construction Partners

23/01/2025 20:27

(updates)
    ** Shares of civil infrastructure company Construction
Partners  ROAD.O  down 10.5% at ~$83 in afternoon trading after
Spruce Point Capital reveals a short position 
    ** Spruce Point says ROAD's share price could have a 35% to
50% potential long-term downside and a risk of market
underperformance
    ** Believes ROAD's business is under greater pressure than
is widely understood
    ** Spruce Point finds that the company has been falling
short of its organic growth projections
    ** Adds, ROAD's contract mix is getting worse while also
taking longer to complete on average, which could indicate that
it is stuck with underperforming jobs
    ** ROAD "strongly refutes" the assertions in the report 
    ** "It is clear that the short-seller made numerous false
statements and is deliberately attempting to mislead the market"
- ROAD
    ** ROAD is set to report Q1 results on Feb. 7
    ** Stock gained 103.3% in 2024 


 (Reporting by Sanchayaita Roy and Aishwarya Jain in Bengaluru)
 ((Sanchayaita.roy@thomsonreuters.com))