Android app on Google Play

DA Davidson Highlights Texas Industries (TXI), Mueller Water (MWA) as Possible Takeover Candidates

May 31, 2012 3:58 PM EDT Send to a Friend
Get Alerts VMI Hot Sheet
Price: $141.15 -0.82%

Rating Summary:
    4 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 13 | New: 4
Trade VMI Now!
Join SI Premium – FREE
An analyst at DA Davidson issued a late-day note Thursday considering some takeover targets in the Construction Products sector following recent notable deals between Eaton and Cooper, Nucor and Skyline, and AZZ and Nuclear Logistics, to name a few.

The firm's Brent Thielman believes "as cash builds, market multiples experience pressure, sectors consolidate and industry particpants clamor for growth amidst a slow market recovery, we expect transactions will be on the menu..." Thielman noted Valmont (NYSE: VMI), Belden (NYSE: BDC), Hubbell (NYSE: HUB-A) and Acuity (NYSE: AYI) as having the liquidity to "participate in potentially meaningful accretive transactions." On the other side, the analyst said Texas Industries (NYSE: TXI) and Mueller Water (NYSE: MWA) are among companies "burning cash and/or with balance sheets that limit the ability to significantly invest..."

Thielman rates shares of Mueller a Buy and shares of Texas Industries a Neutral.




You May Also Be Interested In


Related Categories

Analyst Comments

Related Entities

D.A. Davidson

Add Your Comment