Wolfe Research analyst Timna Tanners downgraded Summit Materials to Peer Perform from Outperform without a price target. The announced acquisition of cement-focused Argos USA “was bold in its timing with rising interest rates and a weaker construction outlook,” the analyst tells investors in a research note. The firm assumes gradual synergy benefit over three years and downgrades Summit to reflect higher debt metrics and cycle risks.
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Read More on SUM:
- Summit Materials to combine with Argos USA in transaction valued at $3.2B
- Summit Materials, Cementos Argos combine in transaction valued at $3.2B
- Summit Materials to Combine with Argos USA, Creating a Materials-Led Enterprise with National Scale
- Summit Materials management to meet with Truist
- Summit Materials price target raised to $40 from $37 at JPMorgan
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