Summit Materials initiated with a Buy at Truist

Truist analyst Keith Hughes initiated coverage of Summit Materials (SUM) with a Buy rating and $40 price target. The analyst believes that the strong pricing in aggregates and cement will continue and offset cost, leading to EBITDA growth this year. Hughes also expects Summit Materials to close its valuation gap of relative to Martin Marietta (MLM) and Vulcan Materials (VMC) as he believes it is "too extreme" given the company’s lower leverage and exposure to a strong cement market.