Jefferies Retains Hold on Texas Industries (TXI)

Jefferies is out with its report today on Texas Industries TXI, retaining Hold. In a note to clients, Jefferies writes, "We are retaining our Hold rating. The current share price is only just below our mid-cycle based valuation, which assumes an EBITDA seven times our current year forecast. However, we estimate that the replacement cost of the assets is around $69 per share, 76% above the current share price. Our 12-month price target ($43) is based on eight times our estimate of TXI's mid-cycle EBITDA of $233m." At the time of posting, shares of TXI were at $39.73.