On Friday, JPMorgan reaffirmed its Overweight rating on Summit Materials (NYSE:SUM) with an unchanged price target of $47.00. The firm's analysis included an adjustment to the 2024 EBITDA estimate, which was decreased by 2% due to the Argos transaction only contributing from mid-January.
The new EBITDA projection for the year is now at $1,030 million, surpassing Summit Materials' own guidance range of $950-1,010 million.
The financial institution has kept all other aspects of its forecast consistent with previous reports. The current net leverage ratio for Summit Materials is reported at 2.0 times. JPMorgan has also positioned Summit Materials as its top pick in the sector, citing a potential 9% upside to current stock prices and a 2024 enterprise value to EBITDA (EV/EBITDA) multiple of 8.8 times.
The price target of $47.00 is based on a December 2024 projection, which suggests that shares of Summit Materials could see a 9% increase from their current trading levels. This target is also supported by the firm's expectation of a 2025 EV/EBITDA multiple of 9.3 times. According to the report, Summit Materials' stock has seen a year-to-date increase of 13%.
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