Eagle Materials resumed with a Hold at Stifel

Stifel resumed coverage of Eagle Materials (EXP) with a Hold rating and $242 price target The firm likes the long-term construction materials market structure, which it believes supports mid- to high-single digit annual pricing growth in aggregates and mid-single digits in cement over the cycle. These pricing gains should outpace costs, creating line of sight to margin expansion for the group, the analyst tells investors in a research note. Stifel, however, sees some near-term risk to Eagle’s expectations as a cold winter has raised natural gas pricing and has likely impacted volume this quarter.