Citi Research initiated coverage of Martin Marietta Materials and Vulcan Materials with buy ratings, saying the companies will benefit from increased government infrastructure spending in the coming years.
President Donald Trump will try to pass tax reform and an infrastructure spending package at the same time this year, according to a report from Axios on Tuesday.
"We think that both Vulcan and Martin present strong investment opportunities at current price levels," analyst Scott Schrier wrote in a note to clients Wednesday. "Martin and Vulcan both give investors exposure to [a] similar theme: economic growth from construction spending that's highlighted by infrastructure and transportation. Both companies … stand to reap significant rewards from the FAST Act, various state and local initiatives, large energy and industrial construction, and housing and related commercial activity."