Citi Rates Vulcan Hold, Has $47 Price Target (VMC)

Citi Investment Research is rating shares of Vulcan Materials Co VMC a Hold and has a $47 price target after the industrial company reported weak earnings yesterday. In the report Citi Investment Research writes, "We rate Vulcan Hold/High Risk (2H). While we continue to believe that the favourable long-term pricing story for aggregates remains in place, near-term trading conditions remain weak. Fiscal stimulus money and better residential markets will help this year, but private non-res and state work will continue to be a drag. In the medium to longer term, Vulcan's strategically positioned quarries provide it with a valuable and attractive asset from which to deliver value over the coming years. A stronger balance sheet reduces the financial risks within the group and puts more emphasis on the trading outlook for volumes and pricing. Near-term trading newsflow is expected to remain poor, but volumes and pricing may start to recover more meaningfully into 2011 and then the expected, significant leverage should be enjoyed." Shares of Vulcan Materials are down $3.66 to 43.19.