Vulcan Materials initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of Vulcan Materials with an Equal Weight rating and $208 price target. Despite its outlook for a peaking U.S. Non-Resi cycle and uncertain macro backdrop, the firm sees “ample high conviction investment ideas within Machinery,” the analyst tells investors while rolling out coverage of the sector. The firm expects the largest Machinery end-market of U.S. Non-Resi to peak in 2024/25, but sees attractive risk-rewards across various other end-markets that it thinks may be troughing, such as trucks and locomotives, the analyst added.