Vladimir Zapletin/iStock via Getty Images
- RBC Capital Markets has upgraded Mohawk Industries (NYSE:MHK) from Underperform to Sector Perform, as noted in the report released by analyst Mike Dahl on Friday.
- Conversely, Vulcan Materials Company (NYSE:VMC) and Summit Materials (NYSE:SUM) witnessed downgrades from Outperform to Sector Perform.
- On Thursday, Summit (SUM) shareholders approved a merger with Argos USA. RBC believes there are lingering questions regarding the ultimate profitability of Argo’s assets.
- Possible low demand for non-residential builds presents risks, but RBC observes potential upside to Vulcan (VMC) due to “strong pricing tailwinds.”
- Despite the upgrade to Mohawk (MHK), RBC still finds the building supplier’s outsized exposure to non-residential and international markets poses risks to future earnings.
