Eagle Materials (EXP) Activist Could Boost Value To $100 - $120 - Suntrust

SunTrust analyst Keith Hughes reiterated a Buy rating and $85.00 price target on Eagle Materials (NYSE: EXP) after Sachem Head, an activist investor run by a former partner at Pershing Square, took a ~10% stake in EXP and is reportedly pushing a breakup.

The analyst stated "Comments of $130 value look too high but we could see $100-$120. The Heavy Materials business is the most valuable given a long history of transactions but wallboard cyclicality and few buyers limit its value. We believe management will resist this move but ultimately might end the ownership of EBIT loss frac sand business (plays little role in SOTP)".

For an analyst ratings summary and ratings history on Eagle Materials click here. For more ratings news on Eagle Materials click here.

Shares of Eagle Materials closed at $73.33 yesterday.

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