-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $39 to $531, valuing shares at an EV/EBITDA of 15.2x our next-12-month continuing operations EBITDA estimate, a discount to its five-year average of 16.1x. We justify our discount given our view of a less supportive construction environment compared to recent years that benefited from substantial IIJA funding. With the IIJA set to expire September 30, 2026, and no replacement currently in place, market expectations for sustained funding may not adequately reflect a scenario where infrastructure funding moves from delayed to canceled, in our opinion. We lower our 2026 EPS view by $0.47 to $19.45 and our 2027 EPS view by $1.37 to $23.10. MLM's focus on its core aggregates business drives our expectations for 180 bps of EBITDA margin expansion (cont. operations) to 35.4% as the divested lower-margin cement/ready-mix concrete operations no longer drag on consolidated margins, though elevated fuel costs and inflation-driven construction budget constraints may limit pricing power.