UPDATE: Fundamentals Improving in Materials Industry, Stifel Upgrades Martin Marietta and Vulcan Materials
In a report released Tuesday, Stifel analysts Stan Ellott and Martin McElroy upgrades both Martin Marietta Materials (NYSE: MLM) and Vulcan Materials (NYSE: VMC) from Hold to Buy. Price target for MLM is set at $125, while VMC is set at $69.
The analysts highlights, "On a go-forward basis we see an improved residential and non-residential environment, a generally more stable funding environment, and positive inflection in construction backlogs helping drive the recovery in the aggregates space. We believe 2014 will mark an inflection point for aggregate demand and believe industry conditions will allow mid- to high-single digit volume growth over the next several years."
Both MLM and VMC and are positions to capitalize on compounding volumes and pricing on the steadily improving industry.
MLM closed Monday at $102.78 and currently trading at $107.89. VMC closed previously at $58.04 and trading up at $61.75.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.