Gold prices buoyed by tariff fears; US duties on 1-kilo bars spur supply concerns
Investing.com - Jefferies raised its price target on Martin Marietta Materials (NYSE:MLM) to $640.00 from $610.00 on Tuesday, while maintaining a Buy rating on the construction materials supplier.
The price target increase comes despite Jefferies trimming second-quarter estimates due to adverse weather conditions. The firm noted May was "a washout" in the Southeast and Northeast regions, with early indicators showing June improving but remaining wetter than normal.
Infrastructure Investment and Jobs Act (IIJA) funding is finally translating to mid-single-digit volume growth in infrastructure markets, according to Jefferies’ industry contacts. Contract awards for highways are up low-single-digit percentage year-to-date, while bridge awards have increased more than 20%.
Jefferies also reduced second-half volume estimates to reflect a soft spring selling season in housing, while light commercial activity remains muted in office and retail sectors. Heavy non-residential construction, particularly data centers and manufacturing, continues to show strong activity.
The firm now forecasts full-year volumes for Martin Marietta Materials to increase by low-single-digit percentages, slightly below the company’s full-year guidance ranges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.