Summit Materials (SUM) Pricing Inflecting in Cement and Aggs, PT Raised to $43 at Jefferies

Jefferies analyst Philip Ng raised the price target on Summit Materials (NYSE: SUM) to $43.00 (from $39.00) after hosting a series of investor meetings with Anne Noonan (CEO) and Brian Harris (CFO) that portrayed a company executing on its strategic plan and committed to a culture of operational excellence. The key takeaways is that the company is seeing good pricing momentum & has announced a 2nd price increases in cement & aggs.

The analyst reiterated a Buy rating, stating "Given the tight supply/demand dynamics and cost inflation, mgmt is looking at a second price increase for its fixed plant aggregates customers & cement. In aggregates, SUM has gone back to its customer base for incremental pricing in several of its markets, which at a minimum will offset inflation. In cement, SUM announced a $6/ton increase for Apr, but noted that it was negotiated in late '20 when S/D was not as tight as now."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
• Petronet LNG Ltd. (PLNG:IN) PT Raised to INR310 at ICICI Securities