GS starts Saint Gobain with 'neutral' as upside priced in

Compagnie de Saint Gobain SA

18/06/2025 07:49

** Goldman Sachs initiates French construction materials group Saint-Gobain SGOB.PA with "neutral" rating, saying upside from revenue growth is largely priced in

** "With margin repair efforts now largely complete, we see the company entering the next chapter, one in which priorities shift to topline growth" - GS

** Broker sees upside in European residential renovation, construction chemicals, and cross-selling of building solutions

** Margin improvement is expected in Europe during the construction upcycle and in the Americas with positive pricing dynamics and new roofing supply in 2025, says broker

** Still, with shares up 47% since January 2024, compared to a 1% decline for peers, GS says it believes the stock largely prices in the upside risk; sets its PT at 110 euros implying a 12% upside

** Out of 22 analysts that cover Saint Gobain, 15 rate the stock "strong buy" or "buy" and ​six rate it "hold" - LSEG data

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))