JPM sees 'further upside on the horizon' for European cement companies
20/11/2024 09:04
** J.P.Morgan says its analysis implies further upside for
the European cement sector, pointing to improving industry
fundamentals, potential upside to current consensus expectations
for next year and a "catalyst-rich" H1
** The broker adds Heidelberg Materials HEIG.DE to its
focus list, saying shares are now its top pick within the sector
** "We see the shares as one of the biggest opportunities
given improving industry fundamentals and pricing power for the
European Cement Industry," it says, also pointing to upside from
carbon-captured net zero cement and concrete from H1 2025
** JPM upgrades Holcim HOLN.S to "overweight" from
"neutral", seeing a compelling valuation after its
underperformance compared to peers year to date, despite some
uncertainties regarding its North America split
** It also raises Buzzi BZU.MI to "neutral" from
"underweight" citing benefits from further acceleration in US
infrastructure spending, even if it remains its least preferred
name in the space
** The broker keeps its "overweight" rating on CRH
CRH.N , but removes it from its focus list
COMPANY RATING OLD RATING PT OLD PT
Holcim Overweight Neutral 108 francs 81 francs
Buzzi Neutral Underweight 46 euros 33 euros
(Reporting by Chiara Holzhaeuser, Alberto Chiumento)
((Chiara.Holzhaeuser@thomsonreuters.com))