JPMorgan moved Eagle Materials (NYSE: EXP) to an Underweight rating from Neutral and reduced its 12-month price target to $215.00 from $230.00 after reviewing the company’s fiscal third-quarter 2026 performance. The stock was trading near $235.11 at the time JPMorgan published its note, and InvestingPro valuation data indicates the shares appear priced above the service’s calculated Fair Value.
The bank’s decision follows Eagle Materials’ Q3 report for fiscal 2026. Revenue outpaced JPMorgan’s estimate by roughly 1%, while reported EBITDA fell about 2% short of the investment bank’s forecast. InvestingPro data cited in the coverage shows the company’s trailing 12-month revenue growth at 1.44%, and the article notes that 10 analysts have recently lowered earnings expectations for upcoming periods.
Central to JPMorgan’s downgrade is a continued softness in wallboard demand. The firm described this as a persistent headwind, one it expects will only subside if residential demand improves materially. JPMorgan does not anticipate that recent government affordability initiatives will deliver a material boost in the near term, and it views the second half of 2026 as the earliest plausible window for a recovery in residential construction activity. Significant improvement, in the bank’s view, is unlikely before 2027.
Despite these short-term constraints, JPMorgan acknowledged factors supporting the medium- to long-term outlook for building materials. Low housing inventory and an average home age of roughly 40 years are cited as structural elements that should sustain repair and remodel activity over time, which in turn could underpin demand for products such as wallboard.
The company’s reported quarterly results provide additional context for JPMorgan’s view. Eagle Materials posted earnings per share of $3.22 for the fiscal third quarter, below the consensus estimate of $3.49 and representing a 10% decline compared with the prior year. Revenue for the quarter reached $556.0 million, narrowly missing the forecast of $557.85 million.
On the shareholder returns front, Eagle Materials declared a quarterly cash dividend of $0.25 per share. The dividend is payable on April 13, 2026, to holders of record as of March 16, 2026. These cash-return measures accompany the company’s recent operating results and the analyst revisions noted above.
Taken together, JPMorgan’s rating change and the company’s reported quarter highlight a mix of near-term demand pressure in wallboard and structural supports that could help the business over a longer horizon. Market participants will likely weigh the timing of residential recovery against current valuation and recent analyst downgrades when assessing the stock moving forward.
Data points referenced
- JPMorgan rating: Neutral to Underweight; price target lowered to $215.00 from $230.00.
- Share price noted at $235.11 and flagged as appearing overvalued by InvestingPro.
- Fiscal Q3 2026: revenue beat JPMorgan estimate by about 1%; EBITDA missed by about 2%.
- Trailing 12-month revenue growth: 1.44% per InvestingPro.
- Analyst revisions: 10 analysts have recently reduced earnings expectations.
- Reported EPS: $3.22 vs. $3.49 estimate; a 10% year-over-year decline.
- Revenue: $556.0 million vs. $557.85 million estimate.
- Quarterly dividend: $0.25 per share; payable April 13, 2026; record date March 16, 2026.