CNBC Pro

These construction materials stocks will rally on Trump’s infrastructure plan, Citi says

Share
A contractor moves steel rebar while working on the construction site in New York.
Victor J. Blue | Bloomberg | Getty Images

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."

More In Pro News and Analysis

CNBC ProCNBC’s Halftime Report traders answer your questions on Disney, Uber and PayPal
CNBC ProUBS’ Art Cashin shares what he’s watching for on inflation and where he sees possible bubbles
CNBC ProEmerging from the pandemic, Uber, Lyft may face global challenges to their gig work model