Bank of America Securities analyst Michael Feniger has maintained their bullish stance on VMC stock, giving a Buy rating on February 19.
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Michael Feniger has given his Buy rating due to a combination of factors including Vulcan Materials’ strong financial performance and strategic outlook. The company reported a robust fourth quarter with a significant increase in EBITDA, surpassing consensus estimates, driven by improved pricing, favorable weather conditions, and operational efficiency. Vulcan Materials has also set optimistic guidance for 2025, anticipating substantial EBITDA growth, partially fueled by contributions from recent acquisitions.
Furthermore, the company demonstrates strong pricing power, despite the negative mix impact from acquisitions, and maintains effective cost control, which bodes well for future profitability. While there is some caution regarding the private non-residential sector, the stable organic growth outlook is supported by public construction projects. Feniger remains confident in Vulcan’s ability to manage inflation and sees the company’s pricing power and quality attributes as key reasons to maintain a Buy rating, even as the price objective has been adjusted to account for the current interest rate environment.
Feniger covers the Industrials sector, focusing on stocks such as Oshkosh, Republic Services, and United Rentals. According to TipRanks, Feniger has an average return of 11.4% and a 63.32% success rate on recommended stocks.