In a report released today, Michael Feniger from Bank of America Securities reiterated a Hold rating on Martin Marietta Materials (MLM – Research Report), with a price target of $575.00.
Michael Feniger’s rating is based on several considerations. Martin Marietta Materials (MLM) has shown a solid performance with its 2024 finish, indicated by its Q4 EBITDA results surpassing consensus expectations. However, the guidance for 2025 was somewhat below expectations, with projected adjusted EBITDA slightly under the anticipated consensus. Feniger notes that rising interest rates could exert pressure on construction activities, yet the company exhibits resilience through strategic acquisitions and stable infrastructure projects.
Additionally, while there is a positive volume outlook for 2025, the organic growth projection for private construction appears to be adjusting due to the persistent high rates. Pricing strategies are aligned with previous projections, though the timing of price increases has shifted, affecting the start of the year. Despite these challenges, cement pricing remains strong, providing some stability. Feniger maintains a Hold rating on MLM due to a balanced risk-reward outlook, given current valuations and market conditions.