BUZZ-Construction Partners down after Spruce Point Capital says short on company

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