UPDATE: D.A. Davidson Reiterates Neutral Rating, Raises PT on Eagle Materials

In a report published Monday, D.A. Davidson & Co. reiterated its Neutral rating on Eagle Materials

, and raised its price target from $50.00 to $70.00. D.A. Davidson noted, “Eagle's shares performed extraordinarily well in 2012 (+128%). Gains have continued since the start of the year with these shares nearing all-time highs achieved at the height of the previous housing cycle. This performance is attributable to a combination of factors, in our view. This includes the relative attractiveness of housing to other domestic sectors of the economy, successful price increases in wallboard, announced cement capacity additions, leverage to upstream oil & gas activity and Eagle's general reputation as a high quality supplier; all of which appear to be contributing to the stock's success. Eagle and industry participants have implemented another wallboard price increase of 25% for the beginning of calendar 2013. This follows a successful 35% price increase at the beginning of 2012. With improving financials among public companies following the last price increase, another round would seem to have headwinds. However, an improving housing sector and new pricing structures provide some support. The success of these increases should be closely watched in the coming months.” Eagle Materials closed on Friday at $64.95.