Jefferies Comments on Vulcan Materials (VMC), Keeps PT at $50; Sees Recovery in Two Major Markets
Tweet
Share
E-mailGet Alerts VMC Hot Sheet
Price: $276.04 +1.98%
Rating Summary:
20 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
20 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Jefferies has issued some comments of Vulcan Materials Company (NYSE: VMC), while keeping its Buy rating and $50 price target.
Jefferies comments its $50 price target still suggests potentially 42 percent of upside for the stock. Amid the bullish aspect for Vulcan, Jefferies is trimming fiscal 2012 estimates slightly, and lowering "aggregate volume expectations from +6% to +2%."
The lowered volume expectations takes its "EBITDA forecast for 2012 by 7% from $510m to $476m and...EPS estimate from $(0.05) to $(0.22)."
California and Florida account for an aggregate 35 percent of Vulcan's sales, and Jefferies expects "California and Florida to recover strongly and again become amongst the fastest growing markets in the United States."
On its financial leverage, Jefferies comments, "Vulcan’s net debt to EBITDA ratio was 7.2 times at the end of 2010. However its debt to cap ratio, on which its covenants are based (max 65%) was only 41%. Major asset writedowns would have to occur for Vulcan to be at risk of breaking its covenant. In our view this is unlikely as Vulcan's assets are mainly its aggregates reserves."
Click here for more analyst color, or here for a ratings history on Vulcan Materials.
Jefferies comments its $50 price target still suggests potentially 42 percent of upside for the stock. Amid the bullish aspect for Vulcan, Jefferies is trimming fiscal 2012 estimates slightly, and lowering "aggregate volume expectations from +6% to +2%."
The lowered volume expectations takes its "EBITDA forecast for 2012 by 7% from $510m to $476m and...EPS estimate from $(0.05) to $(0.22)."
California and Florida account for an aggregate 35 percent of Vulcan's sales, and Jefferies expects "California and Florida to recover strongly and again become amongst the fastest growing markets in the United States."
On its financial leverage, Jefferies comments, "Vulcan’s net debt to EBITDA ratio was 7.2 times at the end of 2010. However its debt to cap ratio, on which its covenants are based (max 65%) was only 41%. Major asset writedowns would have to occur for Vulcan to be at risk of breaking its covenant. In our view this is unlikely as Vulcan's assets are mainly its aggregates reserves."
Click here for more analyst color, or here for a ratings history on Vulcan Materials.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cummins (CMI) PT Lowered to $675 at Jefferies
- Revolution (RVMD) PT Raised to $179 at Bernstein SocGen Group
- Clear Street Reiterates Buy Rating on Anterix Inc. (ATEX)
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
