Summit Materials price target raised to $36 from $32.45 at Citi

Citi analyst Anthony Pettinari raised the firm’s price target on Summit Materials to $36 from $32.45 and keeps a Buy rating on the shares. The analyst models housing starts to bottom in 2023 and expects new home prices to fall 15% from peak, ultimately unlocking affordability and stabilizing activity in in the second half of 2023. He retains a preference for construction materials names citing attractive relative valuations, pricing power, and recession-resistant demand. Pettinari is also selectively positive on homebuilders. The spring selling season should be weak, but a stabilization of second half net orders should be a catalyst, Pettinari contends.