Wolfe Research has upgraded Vulcan Materials (VMC, Financial) from a Peer Perform to an Outperform rating, setting a new price target of $281. The stock has seen a decline of approximately 7% this year, but the analyst believes it is currently undervalued and poised for a rebound.
The analyst expresses confidence in Vulcan Materials' ability to maintain robust pricing power, as price increases are already in motion for 2025. Despite broader market uncertainties, the firm anticipates that any potential reduction in volume will be minimal. The combination of effective pricing strategies, ongoing government expenditure, and a backlog of housing demand are expected to provide substantial support to Vulcan Materials' performance moving forward.
