Jefferies Retains Buy Rating On VMC

Jefferies is maintaining its Buy rating and its $51 price target on Vulcan Materials VMC as estimates are lowered on the stock. Says Jefferies, in the report, “Following Vulcan's updated estimates (16 June) of the impact of its $1.1bn bond issue and $275m tender offer, we are reducing our 2011 EPS estimate excluding one-off items from a loss of $0.30 to a loss of $0.33. Our 2012 EPS estimate remains unchanged at $0.17. As our price target also remains unchanged at $51, 31% above the current share price, we are retaining our Buy rating on the shares.” VMC closed at $38.87 on Friday.