UPDATE: Goldman Sachs Initiates Vulcan Materials Company at Neutral on Limited Upside

Goldman Sachs initiated Vulcan Materials Company

with a Neutral rating and a $55.00 price target. Goldman Sachs commented, "We now have a Neutral rating on VMC with a $55 12-month price target. We are constructive on VMC's cost reduction initiatives and see modest upside to consensus estimates (+3%) driven by strong private construction growth. However, we see an extended path to mid-cycle earnings power for VMC's downstream product lines and key regions and not enough upside to our undiscounted mid-cycle value of $61 in 2016-17E." Vulcan Materials Company closed at $50.58 on Wednesday.