Jefferies Retains a 'Buy' on Vulcan Materials (VMC); Raising Numbers on Better-Than-Expected Q4
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Price: $259.34 +1.91%
Rating Summary:
18 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
18 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Jefferies retains a 'Buy' on Vulcan Materials (NYSE: VMC) price target raised from $51 to $61.
Analyst, Mike Betts, said, "Last Thursday (16 February) Vulcan announced better than expected Q4 results, a $100m Profit Enhancement Program which will fully contribute in 2014, and that it was targeting $500m of divestments by the end of 2012. In our view this significantly increases the value of Vulcan shares."
"We are increasing our 2012 EPS estimate from a loss of $0.41 to a loss of $0.19, and in 2013 from a profit of $0.22 to a profit of $0.79. Our EBITDA estimates increase from $400m to $494m in 2012. For 2013 it only increases from $496m to $558m. We have assumed that the planned $500m of divestments occur at the end of 2012 and reduce Vulcan’s EBITDA by $62m in 2013. However, Vulcan is targeting a further $50m contribution in 2013 from its Profit Enhancement Plan."
For an analyst ratings summary and ratings history on Vulcan Materials click here. For more ratings news on Vulcan Materials click here.
Shares of Vulcan Materials closed at $47.68 yesterday.
Analyst, Mike Betts, said, "Last Thursday (16 February) Vulcan announced better than expected Q4 results, a $100m Profit Enhancement Program which will fully contribute in 2014, and that it was targeting $500m of divestments by the end of 2012. In our view this significantly increases the value of Vulcan shares."
"We are increasing our 2012 EPS estimate from a loss of $0.41 to a loss of $0.19, and in 2013 from a profit of $0.22 to a profit of $0.79. Our EBITDA estimates increase from $400m to $494m in 2012. For 2013 it only increases from $496m to $558m. We have assumed that the planned $500m of divestments occur at the end of 2012 and reduce Vulcan’s EBITDA by $62m in 2013. However, Vulcan is targeting a further $50m contribution in 2013 from its Profit Enhancement Plan."
For an analyst ratings summary and ratings history on Vulcan Materials click here. For more ratings news on Vulcan Materials click here.
Shares of Vulcan Materials closed at $47.68 yesterday.
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