RBC Capital upgraded Summit Materials (SUM) to Outperform from Sector Perform with a price target of $53, up from $45, after the company disclosed it received a non-binding acquisition proposal and has held initial discussions with the interested party. Summit’s decision to put out a release with a formal comment while not outright rejecting the offer “gives the potential for a transaction some weight,” the analyst tells investors in a research note. The firm sees this as an “encouraging development” for shareholders, with ongoing dialogue about a potential takeout likely to provide support for the stock. RBC believes a takeover bid in the low-to-mid $50’s per share “is supported.” Shares of Summit Materials are up 5% to $45.59 in early trading.
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Read More on SUM:
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