Eagle Materials stock price target raised to $246 by Stifel on strong results

Investing.com - Stifel raised its price target on Eagle Materials (NYSE:EXP) to $246.00 from $241.00 on Wednesday, while maintaining a Hold rating on the building materials company following better-than-expected quarterly results. The stock, currently trading at $230.29, appears slightly overvalued according to InvestingPro Fair Value analysis, despite showing GREAT overall financial health.

Eagle Materials reported first-quarter fiscal 2026 revenue of $635 million, exceeding consensus expectations of $612 million, despite facing weather and housing headwinds during the period that ended in June. The company, with a market capitalization of $7.5 billion, has maintained impressive financial metrics, including a healthy current ratio of 2.73 and trailing twelve-month EBITDA of $758.1 million. InvestingPro subscribers can access 10+ additional key insights about Eagle Materials’ financial performance.

The company’s cement business showed resilience with pricing remaining relatively flat year-over-year while volume increased 2%, which Stifel attributed to accelerating infrastructure awards and likely benefits from Eagle’s favorable footprint in housing markets.

In the wallboard segment, Eagle Materials demonstrated notable strength with volumes increasing 4%, outperforming an estimated 6% industry decline, though pricing fell 3% compared to the same period last year. Adjusted EBITDA reached $215 million, slightly above expectations of $214 million, driven by upside in wallboard that was partially offset by higher fixed and raw material costs in cement.

Stifel expressed continued appreciation for Eagle Materials’ position as a low-cost producer with significant raw material reserves, but maintained caution on the near-term housing outlook given recent declines in industry sentiment amid affordability challenges.

In other recent news, Eagle Materials reported its first fiscal quarter of 2026 earnings, which surpassed expectations. The company achieved earnings per share of $3.76, slightly above the anticipated $3.73, representing a 0.8% surprise. Revenue also exceeded forecasts, reaching $634.7 million compared to the expected $610.96 million. This strong performance was primarily driven by better-than-expected results in their wallboard segment, which offset weaker earnings in their cement division. Following these results, Loop Capital raised its price target for Eagle Materials from $230 to $245, while maintaining a Hold rating on the stock. These developments reflect positively on the company’s financial health and market performance.

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