Vulcan Materials Co: Citigroup cuts target price to $350 from $355

Citi analyst has revised the price target for Vulcan Materials Company (NYSE: VMC) to $285 from $301, while maintaining a Buy rating. The adjustment reflects updated first-quarter earnings estimates, which were impacted by weaker demand due to severe winter weather in the Southeast, a key region for the company. The 2024–2025 winter was the coldest in the U.S. since 2013–2014, with atypical snowfall affecting operations. Despite the lower price target, the analyst remains optimistic about the company’s long-term prospects, citing strong financials, including a current ratio of 1.83 and a 55-year streak of uninterrupted dividend payments.

The first-quarter EBITDA estimate has been reduced to $360 million from a prior consensus of $386 million, with volumes expected to decline 1% year-over-year. However, full-year 2025 EBITDA forecasts have been raised to $2.44 billion, factoring in $150 million from recent acquisitions and improved pricing. Analysts from JPMorgan, Stifel, and Truist Securities have also issued positive ratings, with price targets from $285 to $325. Vulcan Materials is expected to report earnings on May 1.