Several infrastructure names, such as Fluor Corp (FLR) and Vulcan Materials (VMC), are on the rise on Tuesday following a Bloomberg report saying that the Trump administration is preparing a nearly $1T infrastructure proposal. According to people familiar with the matter, a preliminary version would reserve most of the money for traditional infrastructure work, like roads and bridges, but would also set aside funds for 5G wireless infrastructure and rural broadband.
$1T INFRASTRUCTURE PROPOSAL: The Trump administration is preparing a nearly $1T infrastructure proposal as part of its push to spur the U.S. economy back to life, Bloomberg's Jenny Leonard and Josh Wingrove reported, citing people familiar with the matter. A preliminary version being prepared by the Department of Transportation would reserve most of the money for traditional infrastructure work, like roads and bridges, but would also set aside funds for 5G wireless infrastructure and rural broadband, the people said.
An existing U.S. infrastructure funding law is up for renewal by September 30, and the administration sees that as a possible vehicle to push through a broader package, sources added. Meanwhile, House Democrats have offered their own $500B proposal to renew infrastructure funding over five years, the report noted.
BUY CAMBIUM NETWORKS: In a research note to investors, JPMorgan analyst Paul Coster said he believes the White House's proposals for $1T of infrastructure spending include investment in rural broadband will receive strong bi-partisan support in Congress owing to the issues exposed by COVID-19 pandemic in the provision of critical information services to underserved communities.
The analyst upgraded Cambium Networks (CMBM) to Overweight from Neutral with a price target of $9, up from $7. Coster cited new product introductions, rural broadband infrastructure spending, WFH demand on WISP capacity, and execution turnaround. Overall, Coster thinks the stock can outperform the mean of his coverage over the next 6-12 months.
PRICE ACTION: In morning trading, shares of Fluor have jumped over 10% to $14.11, while Vulcan Materials and Eagle Materials (EXP) have advanced more than 9% to $123.66 and $75.14, respectively. Also higher, Martin Marietta Materials (MLM) has gained 8% to $215.78, Caterpillar (CAT) has risen over 5% to $130.20, Aecom (ACM) has advanced about 8% to $42.22, Granite Construction (GVA) has jumped almost 19% to $21.28, Quanta Services (PWR) has gained 5% to $39.99, Jacobs (J) has advanced about 6% to $87.20, and U.S. Concrete (USCR) has jumped almost 20% to $27.88.
Fluor
+1.24 (+9.69%)
Vulcan Materials
+10.715 (+9.49%)
Cambium Networks
+0.67 (+12.01%)
Eagle Materials
+6.98 (+10.23%)
Martin Marietta
+16.44 (+8.24%)
Caterpillar
+7.04 (+5.70%)
Aecom
+3.015 (+7.69%)
Granite
+3.44 (+19.23%)
Quanta Services
+1.92 (+5.04%)
USCR
+
Jacobs
+4.8 (+5.83%)