Buzzi down after UBS cuts to 'neutral'

Buzzi SpA

14/10/2025 11:09

** Shares in Buzzi BZU.MI fall around 3% after UBS cut its rating on the Italian construction group to "neutral" from "buy", citing valuation and questions over its decarbonisation strategy

** UBS notes that upside is now more limited for the stock following a material re-rating, and sees less scope for further multiple expansion in the short-term

** Up to Monday's close, the stock rose 40% YTD

** UBS adds Buzzi is lagging European listed peers on decarbonisation investments and its "strategy at present remains somewhat unclear"

** The broker cuts its 2025 EPS estimate by 10% but keeps its PT unchanged at 52 euros

** It believes Buzzi trades at a relative discount to peers due to inefficient net cash balance sheet, limited dividend growth ambition, and potential disruption from major U.S. customer Quikrete

 (Reporting by Laura Contemori)

 ((Laura.contemori@thomsonreuters.com))