Summit Materials initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Angel Castillo initiated coverage of Summit Materials with an Overweight rating and $51 price target. Summit is a North American building materials producer of mainly cement and aggregates used across the non-residential and residential construction markets, the analyst tells investors in a research note. The firm sees an attractive risk/reward for the shares given “tight” U.S. cement supply/demand, its vertically integrated business model, exposure to the “troughing” residential market, inorganic growth opportunity, and strong industry pricing.