JPM cuts Buzzi to 'underweight' on overlooked risks to 2024 earnings

Buzzi SpA

22/07/2024 08:46

** J.P.Morgan cuts Buzzi  BZU.MI  to "underweight" from
"neutral" citing "overlooked" risks to the Italian cement
maker's FY earnings, with H1 results "likely to be a slow start"
    ** JPM expects Buzzi to report H1 EBITDA of 558 million
euros ($607 million), down 3% on a reported basis, "in contrast
to positive growth expected for our other Heavyside names"
    ** JPM says Buzzi's decarbonisation actions are lagging
behind its European peers despite its relatively stronger
balance sheet
    ** With Buzzi's shares trading on a 3% premium vs its
long-term average (vs Heidelberg's on a 17% discount), JPM
expects minimal support for the valuation also in the mid-long
term
    ** "We are less enthused by the group's exposure to Russia
(around 7% of sales, 9% of EBITDA), where the company continues
to have a footprint, though without any operational control,"
says JPM
    ** Out of 15 analysts that cover Buzzi, 10 rate the stock
"strong buy" or "buy", ​four "hold" and one "sell"

($1 = 0.9190 euros)

 (Reporting by Philippe Leroy Beaulieu)
 ((Philippe.leroybeaulieu@thomsonreuters.com))