UPDATE: Goldman Sachs Downgrades Vulcan Materials to Sell

In an equity research note, Goldman Sachs lowers its rating to Sell on Vulcan Materials Company

on excess industry capacity, balance sheet concerns and limited upside to valuation. Goldman elaborates Sell saying it expects “(1) concrete and asphalt mix (33% of VMC) industry excess capacity to drive a longer path to mid-cycle earnings, (2) VMC's stretched balance sheet and low cash generation and returns to drive weak relative performance in a slow recovery, and (3) limited valuation upside with the stock trading at 14.7X 2012E EV/EBITDA and 7X undiscounted EV/EBITDA on our estimates.” VMC closed at $30.49 per share, up 2.08 percent, on Tuesday.