UPDATE: Wolfe Research Starts Summit Materials (SUM) at Outperform

October 27, 2021 4:35 PM EDT
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Price: $40.30 +1.43%

Rating Summary:
    16 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 12 | New: 31
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(Updated - October 28, 2021 4:50 AM EDT)

Wolfe Research analyst Timna Tanners initiates coverage on Summit Materials (NYSE: SUM) with a Outperform rating and a price target of $45.00.

The analyst comments "Our $45 price target uses 10.5x 2023E EV/EBITDA, in line with the five-yr average. As a relatively newer company to larger peers VMC and MLM, SUM has a lighter track record since it IPOed in 2015 after forming in 2009. Its first decade saw rapid acquisitive expansion, but mgmt initiatives to refine its footprint can result in slower growth but less debt. Mgmt’s aims of replicating the higher margins and lighter leverage of its peers should narrow the substantial valuation gap with peers. At 12x we arrive at a $52 price target."

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

Shares of Summit Materials closed at $35.55 yesterday.

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Timna Tanners