UPDATE: Bank of America Initiates Coverage on Martin Marietta Materials with Buy Rating, $136 PT as Demand Recovery Can Propel Shares Up

In a report published Thursday, Bank of America analyst Timna Tanners initiated coverage on

with a Buy rating and $136.00 price target. In the report, Bank of America noted, “We initiate on Martin Marietta Materials (MLM) with a Buy rating and a $136/shr price objective, reflecting a positive view on the growth outlook for key nonresidential construction demand. We expect favorable attributes of protected, local aggregate oligopolies to continue, and incremental margins should be robust as volumes rise. While TXI's contribution seems baked in after a sharp ytd rise in the share price, we also expect better cement conditions to benefit the combined entity. Our integrated earnings model includes synergies from the deal, NOLs, and TXI debt refinancing. MLM's fast-growing geographies and its long-haul transportation system are positive, but integrating TXI could be a headwind in the short term.” Martin Marietta Materials closed on Wednesday at $118.69.