Analysts at Berenberg Bank provided their views on Arcosa, Inc. (NYSE:ACA) following the company’s recently announced Q4 results (Feb 23). The earnings came in better than expected but the company’s 2022 adjusted EBITDA guidance was slightly below the Street expectations. While the company has suffered from a series of negative earnings revisions throughout much of 2021, the analysts note the outlook provided seems to indicate a trough in the company’s more cyclical business lines.

Consequently, the analysts expect the company will begin benefitting from some positive earnings momentum, especially once the recovery in barge/wind towers begins in earnest. The analysts lowered their price target on the company’s shares to $64 from $66, mainly on the back of their lower estimates, but maintain their Buy rating as they believe the company remains a deeply undervalued story.