Eagle Materials downgraded to Hold on slowing demand at Loop Capital

Loop Capital downgraded Eagle Materials (EXP) to Hold from Buy with an unchanged price target of $315. Loop’s Q4 wallboard survey points to demand tracking below contacts’ initial expectations and previously announced price increases have been pulled for now, the analyst tells investors in a research note. As a result, the firm reduced estimates on Eagle Materials and GMS and downgraded Eagle Materials with the shares close to the price target While there is valuation support from cement comps and structurally higher wallboard and segment margins, near- to mid-term earnings momentum is biased towards the downside as the “residential air pocket” related to wallboard shipments catch up to slower new residential housing construction, which is likely to weigh on earnings upside for the next several quarters, contends Loop.