Goldman Sachs analyst Jerry Revich has reiterated their bullish stance on MLM stock, giving a Buy rating yesterday.
Jerry Revich has given his Buy rating due to a combination of factors that underscore Martin Marietta Materials’ strong financial performance and promising outlook. The company’s fourth-quarter results showcased significant profitability growth within its Aggregates unit, evidenced by a 15% increase in pricing that far exceeded the 5% rise in cost of goods sold (COGS) per ton. This widening price/cost spread is not just a one-time event but is expected to persist into the 2024 fiscal year, indicating a robust earnings trajectory for the business.
Furthermore, Martin Marietta Materials’ fourth-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS) both surpassed consensus estimates and Goldman Sachs’ own projections. The company’s guidance for 2024 EBITDA also suggests a positive outlook, with mid-point estimates modestly ahead of the consensus and Goldman Sachs’ adjusted estimates. This guidance excludes the impact of divested cement operations, but even when considering the acquisition of Blue Water, the pro-forma 2024 EBITDA outlook remains favorable compared to unadjusted consensus figures, reinforcing the Buy rating decision.
Revich covers the Industrials sector, focusing on stocks such as Agco, Caterpillar, and Cummins. According to TipRanks, Revich has an average return of 12.1% and a 58.58% success rate on recommended stocks.
In another report released yesterday, Loop Capital Markets also maintained a Buy rating on the stock with a $585.00 price target.
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Martin Marietta Materials (MLM) Company Description:
Martin Marietta Materials, Inc. engages in the provision of aggregates including crushed stone, sand, and gravel through its network of quarries and distribution yards. It operates through the following geographical segments: Mid-America Group, Southeast Group, and West Group. The Mid-America Group and Southeast Group segments provide aggregates products only. The West Group offers aggregates, as well as cement and downstream products including mixed concrete, asphalt, and paving services. The company was founded in November 1993 and is headquartered in Raleigh, NC.
Read More on MLM:
- Martin Marietta Materials Announces 2023 Earnings Results
- Martin Marietta Reports Fourth-Quarter and Full-Year 2023 Results
- Blue Water Industries to sell certain aggregates operations to Martin Marietta
- Martin Marietta Announces Acquisition of Aggregates Operations From Affiliates of Blue Water Industries LLC; Company Also Completes South Texas Cement and Concrete Divestiture
- Martin Marietta acquires aggregates operations, completes cement divestiture
