By Dhirendra Tripathi
Investing.com – Vulcan Materials (NYSE:VMC) and Martin Marietta (NYSE:MLM) shares were up during Friday’s trading as Biden administration’s $1 trillion infrastructure spending plan convinced Jefferies (NYSE:JEF) that the construction material suppliers are a buy.
Vulcan share was up more than 1% and Martin 0.4%.
Analyst Philip Ng who earlier had a hold on the stocks now sees Vulcan at $207 per share and Martin at $424. The targets are respectively 16.4% and 14.5% higher from the stocks’ current levels.
In addition to the infrastructure bill, the analyst sees push coming from the non-residential construction sector as well.
“. . .With 34%-40% of Martin and Vulcan’s sales in non-residential, they have great leverage to a recovery in commercial and could provide upside in 2H21/2022. While the housing market is dealing with labor and material constraints, we see a strong multi-year cycle with the industry under building this decade & supported by favorable demographic trends,” Ng wrote.