Jefferies analyst Philip Ng has maintained their bullish stance on VMC stock, giving a Buy rating today.
Philip Ng has given his Buy rating due to a combination of factors that indicate a strong outlook for Vulcan Materials. The company has shown robust backlogs and bookings, particularly in the infrastructure sector, which suggests sustained demand and supports management’s volume guidance. Additionally, Vulcan Materials is experiencing strong pricing and a moderation in costs, which are expected to lead to significant margin expansion and set the stage for a strong performance in 2025.
Furthermore, Vulcan Materials is seeing encouraging trends in bidding, bookings, and backlogs, with public bookings up substantially year-over-year. Despite some weather-related challenges, the company maintained its volume guidance and is well-positioned to benefit from positive developments in public work and data centers. The downstream segment, bolstered by the acquisition of Superior, is performing above expectations, with improved pricing and margins. Vulcan Materials is also taking a cautious approach to mergers and acquisitions, focusing on select opportunities while managing its debt levels effectively.
Ng covers the Consumer Cyclical sector, focusing on stocks such as International Paper Co, Ball, and Packaging. According to TipRanks, Ng has an average return of 7.6% and a 50.51% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $297.00 price target.