Kepler Cheuvreux cuts Italy's Buzzi to 'hold' on H1 margin squeeze

Buzzi SpA

17/07/2025 08:57

** Kepler Cheuvreux cuts Italy's Buzzi BZU.MI to "Hold" from "Buy" as it sees a 220 bps H1 margin compression that originates from the U.S. and German markets

** Shares of the cement maker fall as much as 2.8%

** U.S. margin compression results from a 7% H1 volume fall due to adverse weather for February and May, the brokerage says

** Additionally, the "modest" 2% increase in U.S. prices was not sufficient to cover fixed costs inflation, it notes

** German margin compression is attributable to a 3% Y/Y decrease in cement prices, and a 15% Y/Y rise in power prices, it adds

** Out of 15 analysts that cover Buzzi, six rate the stock "Strong Buy" or "Buy", ​nine rate "Hold"

** Buzzi to release its H1 results on August 5

(Reporting by Philippe Leroy Beaulieu)

((Philippe.leroybeaulieu@tr.com))