Eagle Materials initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Eagle Materials (EXP) with a Sector Perform rating and $208 price target The firm believes Eagle is leaving $88 per share “on the table by” combining its light and heavy-side operations. Shareholder value would be created if the Eagle was split into two companies: Eagle Materials and Eagle Wallboard, the analyst tells investors in a research note. RBC says that while the light-side business is currently weighing down the valuation, once the residential market turns, Eagle’s heavy-side exposure will hold back a re-rating.