MLM Maintained by UBS -- Price Target Lowered to $662

U.S. housing starts fell 9% in September to 1.221M units, missing estimates of 1.305M, according to Truist. Multi-family starts dropped 28% year-over-year, while single-family starts rose 2%. Permits and completions also declined. The data impacts building products and homebuilder stocks.

DA Davidson upgraded Martin Marietta Materials (NYSE: MLM) to Buy with a $610 price target, citing underperformance and attractive valuation. The stock is down 20.8% YTD but has a PEG ratio of 0.30. The firm expects pricing improvements and supports the LNA deal. MLM announced $5.5B in notes for the LNA acquisition, expected to close in Q3 2026. JPMorgan also upgraded MLM to Overweight, citing cost synergies.

JPMorgan upgraded CRH to Overweight with a $115 price target for 2027, down from $140 for 2026. The firm expects downward revisions in 2026 guidance for construction materials companies due to margin pressures from rising diesel costs and weak pricing. JPMorgan sees Cemex as best positioned, with cost savings and strong Mexico performance. GCC shares are up 32% year-over-year, offering a 5.2% dividend yield.

Carmeuse acquired 80% of Argentina's Caleras San Juan, expanding lime production capacity. Mississippi Lime Company partnered with Fortera for low-carbon cement. SigmaRoc bought Dolomitas in Lithuania for €118m. Martin Marietta completed its acquisition of Lhoist North America. Breedon Group and Votorantim Cimentos España announced executive appointments. US removed tariffs on Canadian cement imports. Heidelberg Materials plans to close its Ranville plant in France.

J.P. Morgan recommends Reformation (REF) and Martin Marietta Materials (MLM) as investment opportunities. REF, a sustainable fashion company, reported Q2 revenue of $155.2M, up 24%, and has a $21 price target. MLM, a construction materials supplier, completed a $13.5B acquisition and reported Q2 revenue of $1.9B, up 21%. Both stocks have positive analyst ratings.

High-grade debt issuance surged to $57 billion in the first two days of September, potentially leading to a fourth consecutive monthly record. September's supply could exceed $200 billion, surpassing last year's $189 billion. Key deals include GlaxoSmithKline's $6.5 billion offering and UBS's $6 billion print. AI debt spreads remain tight, but yields have risen. M&A-related debt issuance increased to 20% in August, the highest since May.