Summit Materials downgraded to Hold from Buy at Jefferies

Jefferies downgraded Summit Materials (SUM) to Hold from Buy with a price target of $52.50, down from $58. The firm says that in a low growth environment and likely softer first half of 2025 in residential, it is “picking our spots” and downgrading some building products names as part of a 2025 outlook. Jefferies’ contacts are calling for flat to low single-digit volume growth in new residential and remove and replace, but there isn’t a strong consensus if one end market will outperform, the analyst tells investors in a research note. The firm says its contacts believe mortgages rates need to be in the 5.5% to less than 6% range for demand to accelerate, but that Trump’s policies are likely to be inflationary, so it expect rates to stay “higher for longer”.