Hopes for an infrastructure spending spree in California lift Vulcan Materials shares

A worker repaves a road on Encino Drive in Oak View, California.

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A worker repaves a road on Encino Drive in Oak View, California.

Shares of Vulcan Materials rose 3 percent Wednesday on expectations for increased highway and repair spending in California.

Vulcan, one of the nation’s largest producers of construction aggregates, could benefit from California roadwork funding, according to a research note Wednesday from SunTrust Robinson Humphrey analyst Rohit Seth.

Late Wednesday, California Gov. Jerry Brown and leaders from the state legislature announced what the governor’s office termed “a landmark transportation investment to fix our roads, freeways and bridges in communities across California and put more dollars toward transit and safety.” The legislation is expected to be voted on by April 6.

A press release issued by Brown’s office said the “$5 billion-a-year program will cost most drivers less than $10 a month and comes with strict new accountability provisions to ensure funds can only be spent on transportation.” Overall, the funding is expected to approach a whopping $52.4 billion over the next decade.

SunTrust said measures under consideration in California would raise highway funding well above previous levels.

Vulcan stock closed up $3.56, or 3.1 percent, at $118.16. In trading Wednesday, the stock touched as high as $118.78, before giving up some of its gains.