JPM cuts Buzzi to 'neutral' on decarbonisation, capex risks

Buzzi SpA

03/12/2025 09:56

** J.P.Morgan cuts Buzzi BZU.MI to "neutral" from "overweight", pointing to rising capital expenses in the Italian construction group and a strong share rally in 2025

** The broker expects Buzzi capex to increase due to its decarbonisation strategy in Europe, the delay in which exposes the company to rising EU Emissions Trading System costs

** It also warns of pricing pressure in the U.S. where Buzzi is also facing a potential loss of volumes from a key customer, while it steps up capex to modernise its plants in the country

** The brokerage has favoured the "heavyside" sub-sector among European building materials for 2026, noting the segment still offers better valuation support and pricing power

** But Buzzi's high exposure to Germany positions it well to benefit from government stimulus, JPM says

** The broker raises its PT to 58 euros from 54 euros

** Buzzi shares gain over 44% YTD and the broker says the strong 2025 performance limits further upside

** Out of 14 analysts, four rate the stock "strong buy" or "buy,"​ ten "hold"

($1 = 0.8591 euros)

 (Reporting by Laura Contemori)

 ((Laura.contemori@thomsonreuters.com))