Barclays ups Heidelberg, downgrades Buzzi

Buzzi SpA

17/11/2025 10:14

** Barclays upgrades Heidelberg Materials HEIG.DE to "overweight" from "equal-weight," seeing the cement maker's sites favourably positioned to capture the greatest price-cost spread from EU's Emissions Trading System (ETS) Phase 4

** Analysts also see the group to benefit from volume catch-up in core Western and Northern European markets as demand normalizes

** "In the US, while the outlook for cement is not particularly strong, aggregates pricing is likely to remain resilient into next year supported by infrastructure activity and a potential recovery in non-residential construction" - Barclays

** The brokerage downgrades Italian peer Buzzi BZU.MI to "equal-weight" from "overweight"

** It sees the cement producer facing a structurally more challenging CO2 cost position relative to its peers

** "The company is entering a heavy capex cycle over the next few years(...)limiting near-term FCF and flexibility to absorb higher ETS costs/invest in decarbonisation projects to improve the position of the sites on the cost curve," it adds

(Reporting by Paolo Laudani in Gdansk)

((Paolo.laudani@thomsonreuters.com))