Jefferies Lowers PT On VMC To $51

Jefferies, citing an announcement made by the company last Friday has lowered its price target on Vulcan Materials Company VMC from $52 to $51 but maintains its Buy rating on the stock. Says Jefferies, in its report, “Vulcan's announcement on Friday (3 June) on the pricing of its $1.1bn senior bond offering has caused us to increase our estimate of its interest charge by $14m this year and by $28m in 2012, reducing our EPS estimates by $0.07 this year and by $0.15 next year. Our price target also falls by $1 to $51, but as the latter is still 35% above the current share price, we are retaining our Buy rating on the shares.” VMC closed on Friday at $37.78.