NEW YORK — A Goldman Sachs analyst downgraded Alabama-based construction materials supplier Vulcan Materials Co. on concerns a recent share price rally was overdone and company fundamentals are deteriorating.

Ajay Kejriwal, writing in a Sunday client note, downgraded shares to "Sell" from "Neutral." He noted the stock has risen 28 percent since mid-July.

That surge came "despite weakness in U.S. state departments of transportation budgets, which (will) likely pressure 2009 highway spending, a 30 percent exposure to softening U.S. non-residential markets and significantly weaker industry pricing power due to the approximately 15 percent decline in volume from peak levels," he wrote.

Furthermore, the analyst said a 20 percent year-over-year rise in the cost of construction materials has exacerbated a decline in the real value of contracts.

"We also see heightened risk to 2009 crushed stone pricing as intensified competition and declining contractor profitability results in increased customer pushback on price increases."