JPMorgan upgrades Martin Marietta on infrastructure tailwinds

JPMorgan last night upgraded Martin Marietta (MLM) to Overweight from Neutral with a price target of $640, up from $515. With the U.S. constructing materials sector trading at peak multiples, the “current narrative is priced for perfection and that any signs of growth weakness could pose a de-rating risk,” the analyst tells investors in a research note. The firm says that while the sector is not a strong buy, it does not foresee significant downside from current levels either. It anticipates aggregates volumes to grow low single digits, with upside risks, driven primarily by infrastructure, while nonresidential and residential are likely to continue lagging. JPMorgan upgraded Martin Marietta, saying the company has attractive geographic exposure, with operations in states that could continue to outperform the country’s national average and that have attractive midterm growth potential.