Citi expects potential for downside revisions to Vulcan Materials FY outlook, lowers PT

Vulcan Materials Co

11/07/2024 19:03

** Citi lowers PT for constructions company Vulcan Materials
 VMC.N  to $297 from $322
    ** Brokerage said, "We see potential for modest downside
revisions to VMC's FY guide as fully recovering from a softer 1H
may prove challenging"
    ** Citi expects VMC could forecast FY aggregates volumes to
the lower end of its prior range, but doesn't expect the wet
weather to severely hamper pricing in Q2, and models aggs.
prices to rise 11% Y/Y 
    ** Brokerage sees Biden administration's infrastructure bill
IIJA spending flowthrough to accelerate from $8B in 2023 to $37B
in 2024, driving aggs. volumes in the 2024 construction season
    ** Citi says VMC is well-positioned to reaccelerate M&A and
added that management may look for assets to replace
productivity lost to the company's ongoing dispute with the
Mexican government
    ** 18 of 24 brokerages rate the stock "buy" or higher, 6
"hold"; their median PT is $300
    ** YTD, VMC up 10.9%

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.parmar@thomsonreuters.com))