HSBC Upgrades Martin Marietta Materials (MLM) to Hold

HSBC analyst Wesley Brooks upgraded Martin Marietta Materials (NYSE: MLM) from Reduce to Hold with a price target of $543.00 (from $376.00).

The analyst comments "We increase our DCF-derived target price by 44% to USD543 (from USD376) reflecting our higher forecasts and an increase in our terminal growth rate assumption to 2.5% (from 2%) given likely continued tight markets and strong pricing power in the long term. Our new target price implies c1% upside and a 22x 2025e PE. Upside risks include longer-than-expected demand increase from stimulus spending, further double-digit price increases, a strong recovery in residential construction, and future well-executed M&A activity. Downside risks include less-than-expected benefit from stimulus spending, resistance to further large price increases from customers, aneventual downturn in infrastructure spending, poor execution on future M&A, and negative impacts from unexpected weather conditions."

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

Shares of Martin Marietta Materials closed at $536.30 yesterday.

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