DA Davidson analysts increased their price target for Arcosa (NYSE:ACA) to $105 from $95, maintaining their Buy rating on the stock. The new target is based on a 13x and 12x multiple of projected EBITDA for 2024 and 2025, respectively.

The updated estimates take into account partial contributions from the recent Ameron acquisition and anticipate a second-half increase in wind deliveries that should persist into 2025 and beyond. Additionally, improving barge visibility and backlog, alongside the aggregate segment's strong margins, provide opportunities for growth as infrastructure and construction activities pick up.

The analysts believe that the company's growth potential, leverage to infrastructure investment, and steady cash flow position it favorably, which supports the continued Buy recommendation.