Jefferies could see takeout price for Summit Materials ‘in the mid-$50s’

After Bloomberg reported that Quikrete Holdings has approached Summit Materials (SUM) about a potential takeover and the latter subsequently disclosed that it has received a non-binding acquisition proposal and “has held initial discussions with the interested party,” Jefferies said the news “isn’t a surprise” given that the firm has “long argued” Summit’s stock price was “very dislocated” and that the company should be viewed as a potential takeout candidate. Looking at recent takeout multiples, peers, and the firm’s sum-of-the-parts analysis, the firm says it “could see a takeout price of SUM in the mid-$50s.” Jefferies has a Buy rating and $56 price target on Summit Materials shares.