Goldman Sachs Suggests Buying Put Spreads on Vulcan Materials Company (VMC)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy put spreads on Vulcan Materials Company VMC to hedge commodity exposure.

Goldman Sachs Construction Products analyst, Jerry Revich, rates shares as a Sell and sees 27% downside to his 12-month price target of $32. He expects VMC to lose $0.56 per share in 2011, vs. consensus at a loss of $0.43 per share.

Goldman suggests buying the May $36/41 put spread for $1.25.

Vulcan Materials Company is a producer of construction aggregates, primarily crushed stone, sand and gravel. The company is also a producer of asphalt mix and ready-mixed concrete and a producer of cement in Florida.