Martin Marietta stock price target raised to $637 by Stifel on strong pricing

Published 11/08/2025, 22:12
Martin Marietta stock price target raised to $637 by Stifel on strong pricing

Investing.com - Stifel raised its price target on Martin Marietta Materials (NYSE:MLM) to $637.00 from $609.00 on Monday, maintaining a Buy rating following the company’s second-quarter 2025 results. The stock, currently trading at $599.93, is approaching its 52-week high of $633.23, though InvestingPro analysis suggests the stock may be overvalued at current levels.

Martin Marietta reported second-quarter results that aligned with previously announced preliminary figures. While revenue fell short of expectations due to weather challenges, the company delivered an adjusted EBITDA beat, with aggregates gross profit per ton increasing 10% year-over-year, driven by favorable price-to-cost dynamics. The company maintains strong fundamentals with an EBITDA of $2.17 billion and a healthy current ratio of 2.35. InvestingPro data reveals 12 additional key insights about MLM’s financial health and growth potential.

The construction materials supplier updated its 2025 guidance to reflect first-half weather challenges, slightly reducing aggregates volume expectations. This was partially offset by improved aggregates pricing and contributions from the Premier acquisition, leading to a $50 million increase in adjusted EBITDA guidance at the midpoint.

Stifel highlighted the recently announced Quikrete deal as enhancing Martin Marietta’s aggregates-led position while reducing exposure to ready-mix, which the firm characterized as more cyclical with lower margins. The acquisition also diversifies the company’s geographic footprint.

The research firm sees opportunity for Martin Marietta to implement its "value over volume" strategy across Quikrete’s aggregate operations, where pricing is currently lower than Martin Marietta’s corporate average.

In other recent news, Martin Marietta Materials reported its second-quarter earnings for 2025, showcasing a mixed performance. The company exceeded earnings per share expectations, delivering $5.43 compared to the projected $5.35. However, Martin Marietta fell short of revenue expectations, posting $1.81 billion against the anticipated $1.89 billion. In a strategic move, the company announced an asset exchange with Quikrete, where Martin Marietta will acquire aggregate operations with a capacity of 20 million tons and $450 million in cash, while transferring its cement and ready-mix concrete operations in North Texas to Quikrete. Following this announcement, Jefferies raised its price target for Martin Marietta to $700, maintaining a Buy rating, citing the potential of this merger and acquisition activity. Additionally, RBC Capital increased its price target to $525 from $515, while keeping a Sector Perform rating, acknowledging the company’s strong second-quarter performance despite challenging weather and macroeconomic conditions. These developments reflect a period of strategic adjustments and financial resilience for Martin Marietta.

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