This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ahead Of The Bell: Granite Construction Downgraded

HARTFORD, Conn. (AP) ¿ An analyst downgraded Granite Construction Inc. Thursday, saying the contractor and producer of construction materials could feel the impact of reduced spending on public works in the next six months to a year.

Goldman Sachs analyst Joe Ritchie downgraded the Watsonville, Calif., company to "Neutral" from "Buy."

"While we continue to like the infrastructure theme longer-term, we believe domestic infrastructure will underperform energy infrastructure over the next six to 12 months," he said in a client note.

Ritchie upgraded Granite Construction to "Buy" in late May, but said Thursday he underestimated the extent of California's state funding problems. He also said he believed much of the bad fiscal news was already priced into the stock.

However, stocks related to companies involved in energy projects have since outperformed and he believes this will continue in the next six to 12 months.

Ritchie said he is positive on the long-term growth prospects for Granite Construction. Its shares will benefit from federal stimulus spending and a pickup in residential construction, particularly in California, he said.

Ritchie cut his estimate to $1.53 per share from $1.70 for this year, to $1.85 per share from $2.25 for 2010 and to $2.50 per share from $2.65 per share for 2011.

Analysts surveyed by Thomson Reuters expect, on average, that Granite Construction will earn $1.77 per share this year, $1.95 per share for 2010 and $2.60 per share for 2011.

Shares fell 50 cents to $28.64 in premarket trading.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GVA $35.04 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs