A KeyBanc analyst downgraded both Martin Marietta Materials and Vulcan Materials from buy to hold on Tuesday, saying the companies’ stock prices now reflect the potential boost they may get from public transportation spending in the coming years.
The stocks of both Raleigh-based Martin Marietta and Birmingham, Ala.-based Vulcan have posted double-digit percentage gains since Sept. 4. Martin Marietta shares, which closed Tuesday at $85.16, are up 14 percent over that period while Vulcan shares are up 22 percent.
Martin Marietta’s shares now reflect a gradual improvement in construction activity over time and the potential benefit if the company sweetens its offer to acquire Vulcan, wrote KeyBanc analyst Rodny? Nacier.
Martin Marietta officials have not signaled whether they intend to resume their efforts to acquire Vulcan. The company was banned by a Delaware judge from pursuing its hostile takeover for four months, but that order expired Sept. 14.