Wolfe Research upgraded Summit Materials to Outperform from Peer Perform with a $49 price target. The firm says Infrastructure stimulus, lean housing supply, and more attractive cement fundamentals support a more positive view on the shares. The upgrade reflects a “warming to cement” and Summit ‘s Argos USA acquisition, plus the stock’s “unwarranted discount to peers,” the analyst tells investors in a research note. Wolfe thinks the shares deserve a premium to historical values on the company’s shift to more profits from aggregates and cement, lighter leverage than in the past; and a broader re-rating across the space to reflect a positive multi-year infrastructure outlook and expected housing shortage.
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