Eagle Materials Capitalizes On Strong Cement Pricing Despite Wallboard Slowdown: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst Keith Hughes has reiterated a Buy rating on Eagle Materials Inc (EXP), raising the price target to $220 from $195. The company's Q1 2024 revenues rose 7% Y/Y to $601.5 million, with strong cement pricing and slower-than-expected wallboard results. Hughes expects the bottom of the wallboard market in the next two to three quarters, but no substantial contraction in earnings is anticipated. The company's plants are near sold-out conditions due to heavy demand, and double-digit pricing increases have been announced in about half their cement markets.

July 31, 2023 | 7:00 pm
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POSITIVE IMPACT
Eagle Materials Inc's stock is likely to be positively impacted by the reiterated Buy rating and increased price target. The company's strong financial performance and favorable market conditions are expected to support its stock price.
The analyst's reiterated Buy rating and increased price target indicate a positive outlook for Eagle Materials Inc. The company's strong Q1 2024 performance, with a 7% Y/Y increase in revenues, and the continued strong demand for its products, as evidenced by near sold-out conditions at its plants and double-digit pricing increases in about half its cement markets, are likely to support its stock price. However, the slower-than-expected wallboard results and the expectation of the bottom of the wallboard market in the next two to three quarters could create some uncertainty.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100