UPDATE: Stifel Lowers PT On Eagle Materials As Oil Trades Down

In a report published Tuesday, Stifel analyst John Baugh reiterated a Buy rating on

, but lowered the price target from $110.00 to $98.00. In the report, Stifel noted, “We have watched Eagle Materials trade off roughly as much as 33% from the high in September of $105.69 and the share is now down 26% from that peak (compared to about a 4.5% increase in the S&P 500) as oil prices have come down sharply over the same time period. EXP has essentially traded as if it were an oil stock, and we point out a roughly 70% correlation between the share price and WTI crude prices since July. We have had plenty of questions from investors related to Eagle's frac sand business and how changes in oil prices could change the outlook for this business. Given the run-up of the stock and the excitement around the frac sand business, this trading result makes sense. However, we think it could be overdone at this point.” Eagle Materials closed on Monday at $77.93.