Jefferies upgrades Texas Industries to Buy

Jefferies upgrades Texas Industries to Buy
Published: 31 August 2011

Jefferies upgraded Texas Industries from Hold to Buy with a price target of US$39 (down from US$43).

The firm states, "Although we are reducing our EBITDA and EPS estimates, we continue to expect both cyclical recovery and high long-term growth rates in TXI’s major markets of Texas and California. TXI also has strong asset backing, with modern cement capacity in Texas and California, which we estimate has a replacement cost equating to around US$66 per share.”

FY12 EPS goes from ($0.61) to ($1.42) and FY13 EPS from $0.40 to ($0.98).