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Centuri Holdings (NYSE:CTRI) -10.9% in Thursday’s trading, after plunging as much as 21% to a new low since its April IPO, following the announcement that President and CEO Bill Fehrman will depart at the end of July to become CEO of American Electric Power.
Bank of America downgrades shares to Underperform from Neutral with a $21 price target, cut from $26, citing further interruption in key leadership and not naming a permanent successor as intensifying the risk of mixed execution.
BofA lowers its full-year revenue estimates 2% and EBITDA estimates by 4%-6%, viewing Centuri’s (CTRI) self-help and margin improvement story, with the potential to shift earnings power in the coming years, as more at risk because of the CEO change.
While BofA sees Centuri (CTRI) as a multi-year beneficiary of higher grid spending, the analysts say they need to see a track record of execution, which is now at risk on strategic review and margin expansion initiatives after the change.