UPDATE: Sterne Agee Upgrades Texas Industries to Neutral

In a report published Monday, Sterne Agee Group upgraded its rating on Texas Industries

from Underperform to Neutral. Sterne Agee noted, “We are upgrading TXI from Underperform to Neutral, given investors' apparent willingness to price in an eventual takeover of the company, in the context of improving end-market demand for the company's products, and (only coincidentally) following a day on the road with management. We still find valuation extremely daunting, and are not recommending that investors buy the stock, but concede that our prior Underperform rating seems unlikely to pan out.” Texas Industries closed on Friday at $42.84.