Aug. 26 at 2:05 PM
JPMorgan expects U.S. building materials stocks to keep gaining, citing stronger demand trends in H2 2025 and into 2026. The bank set Dec 2026 price targets, projecting an average upside of 15% for OW-rated U.S.-only names, 20% for those with some international exposure, and 7% for N-rated stocks.
The sector is up 15% YTD, outperforming the S&P 500’s 10%, driven by strong gains from mid-April to mid-July. JPMorgan notes this reflects expectations for better H2 volumes and possibly prices—especially for Aggregates—as anticipated rate cuts from September may boost residential and non-residential spending.
Despite high multiples, favorable demand factors support the sector, particularly Aggregates, which exceeded H1 expectations. Analysts highlight infrastructure and heavy non-residential spending as key drivers, with “green shoots” in manufacturing and multifamily.
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