RBC Capital downgraded Summit Materials to Sector Perform from Outperform with a price target of $38, down from $43. The analyst sees limited upside potential in the stock at the current valuation. It appears the Argos transaction will proceed, which will be an overhang on the stock given the increased leverage, integration risks, lingering questions on ultimate profit/margin potential for the Argos assets, and Summit’s new heavier mix of cement, the analyst tells investors in a research note.
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Read More on SUM:
- Summit Materials Shareholders Approve Combination with Argos USA
- Summit Materials price target raised to $43 from $39 at Citi
- Summit Materials’ pending Cementos Argos transaction recommended
- Leading Independent Proxy Advisory Firms ISS and Glass Lewis Recommend Summit Materials Shareholders Vote “FOR” Pending Transaction with Cementos Argos
- Summit Materials announces intention to offer $800M of senior notes
