RBC Capital Has a Sector Perform Rating on Eagle Materials (EXP), Here’s Why

Eagle Materials Inc. (NYSE:EXP) is one of the Best Cement Stocks to Buy For the Long Term. On February 24, RBC Capital initiated coverage of Eagle Materials Inc. (NYSE:EXP) with a Sector Perform rating and a $208 price target.

​The analyst noted that the company is leaving around $88 per share of value untapped by combining the heavy and light side businesses, thereby creating a conglomerate discount. The firm highlighted that splitting the two businesses could unlock enhanced shareholder value. RBC noted that the residential exposure poses risks now, but heavy-side assets could cap gains later as the housing market recovers.

​For context, the light side refers to business including wallboard and paperboard, while the heavy side refers to cement, aggregates, and concrete operations.

​Eagle Materials Inc. (NYSE:EXP) is a US producer of basic construction inputs used in infrastructure and building projects. It focuses on both “heavy” materials (for roads and structures) and “light” materials (for interior building and packaging).

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