Summit Materials price target lowered to $44 from $51 at Citi

Citi lowered the firm’s price target on Summit Materials to $44 from $51 and keeps a Buy rating on the shares. The analyst lowered estimates and target multiples for building products producers to reflect more conservative macro assumptions, especially around residential construction. The firm’s estimates are now 4% below consensus. Following a historically bad Q2 for share price performance, Citi sees value in heavy construction materials and expects earnings results and guidance revisions “could be a clearing event for the group.” It likes construction materials’ “defensive qualities” and CRH (CRH) remains its top pick.