UPDATE: Goldman Sachs Lowers PT on Eagle Materials on Short-Term Delay, Long-Term Opportunities

In a report published Tuesday, Goldman Sachs analyst Jerry Revich reiterated a Conviction List Buy rating on Eagle Materials (NYSE: EXP), but lowered the price target from $97.00 to $94.00.

In the report, Goldman Sachs noted, “We reduce our FY2014-16 EPS to $2.89/$5.07/ $7.65 from $3.24/ $5.89/ $7.82 driven primarily by a slower volume ramp in the frac sand business owing to an environmental permitting delay at Eagle's frac sand mine in Illinois. While the delay is clearly disappointing, similar mining operations in the state and EXP's existing limestone quarry suggest approval is likely once the public comment period is complete. We maintain our CL Buy on the stock despite the delay as we remain bullish on the cement pricing cycle and believe EXP's unique frac sand logistics business provides disproportionate risk-adjusted upside, while on our estimates the stock discounts minimal earnings contribution from the frac sand business.”

Eagle Materials closed on Monday at $67.56.