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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Vulcan Materials Company
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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Vulcan Materials Company
Sep 28, 2025 6:19 PM

01:20 PM EDT, 09/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $25 to $302 on an EV/EBITDA of 16.2x our next 12-month EBITDA estimate, a discount to the five-year average of 16.4x, as we expect labor shortages and cost inflation to drag on the construction industry and limit multiple expansion. We lift our 2025 EPS view by $0.23 to $8.41 and 2026's by $0.12 to $9.89 to reflect lower interest rates that should provide some stimulus to residential construction. Despite these increases, we remain at Hold, as we believe macroeconomic indicators are shifting the scale further toward risk rather than reward, though VMC's history of resilience through cycles provides reassurance. We see mass deportations causing significant labor shortages in the construction industry, with employment declining for three consecutive months while job openings have surged 33.6% Y/Y as employers scramble to fill gaps. VMC faces heightened exposure to these labor disruptions due to its geographic concentration in states with the largest unauthorized immigrant populations.

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