Update shared on 28 Nov 2025
Analysts have increased their price targets for Vulcan Materials, with the most notable raise to $340. They cite expectations of stronger volumes from accelerating highway spending and improved pricing trends.
Analyst Commentary
Analyst perspectives on Vulcan Materials reflect a range of expectations about the company’s future performance and the broader construction sector outlook.
Bullish Takeaways- Bullish analysts highlight potential upside in shipment volumes due to accelerating highway project spending. This is expected to drive revenue growth.
- Improved pricing trends are contributing to higher margins, which supports upward revisions to price targets.
- Sector-wide improvements in inventories, especially in machinery and agricultural segments, are seen as encouraging signs for continued demand.
- Multiple upward price target adjustments suggest ongoing confidence in the company’s ability to execute on growth opportunities, particularly within infrastructure and construction end markets.
- Cautious analysts maintain a wait-and-see approach, noting sector headwinds and adopting a more conservative stance on construction activity through 2026.
- Preference for industry peers in cement and home improvement indicates some skepticism regarding Vulcan's near-term outperformance compared to other materials companies.
- Expectations for an industry recovery have been pushed to late 2026 or into 2027. This tempers enthusiasm about short-term growth prospects.
What's in the News
- Ronnie Pruitt has been named Chief Executive Officer effective January 1, 2026. He will succeed J. Thomas Hill, who will become Executive Chairman of the Board. (Key Developments)
- The company continues to actively pursue mergers and acquisitions, focusing on aggregate-led opportunities. This is occurring despite a pause in M&A activity due to market conditions and interest rates. (Key Developments)
- Vulcan Materials completed the repurchase of over 11.5 million shares, totaling approximately $1.2 billion. This fulfills its buyback program initiated in 2006. (Key Developments)
Valuation Changes
- Fair Value: Remains unchanged at $317.70 per share.
- Discount Rate: Increased slightly from 8.11% to 8.12%.
- Revenue Growth: Increased slightly from 7.58% to 7.67%.
- Net Profit Margin: Decreased modestly from 16.00% to 15.95%.
- Future P/E: Increased marginally from 33.76x to 33.78x.
Disclaimer
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