JPM sees mixed H2 for European building materials stocks

CRH

25/10/2021 08:57

** JP Morgan expects European building materials companies
to report mixed results for the rest of the year after a strong
H1 as growing raw material and energy cost headwinds might
negatively impact margins
    ** JPM downgrades HeidelbergCement  HEIG.DE  to
"underweight" from "neutral" given the ongoing cost headwinds in
cement and remains "neutral" on Holcim  HOLN.S  
    ** The broker sticks to its "underweight" rating on Buzzi
Unicem  BZU.MI , given the company's smaller size and lower
diversification
    ** Overall, JPM expects solid FCF generation in H2 and
beyond on the back of the global demand growth and less
conservative capital allocation
    ** JPM upholds its "overweight" rating on CRH  CRH.I  and
Saint Gobain  SGOB.PA  citing the companies' large exposure to
the attractive renovation end-market, their solid balance sheets
and financial discipline
    

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))