RBC sees gradual improvement for European & US building materials stocks in Q3
BUZZ-RBC sees gradual improvement for European & US building materials stocks in Q3 ** RBC sees a gradual q/q improvement across most European materials products in Q3, but notes US geopolitical uncertainty will continue to fuel cost inflation and volatility
** RBC expects muted European volumes due to heatwaves and rising mortgage rates while a weak US residential backdrop and the absence of a meaningful storm season drive a destocking cycle for roofing firms
** The broker prefers Germany's Heidelberg HEIG.DE -- upgrades it to "outperform" -- noting the company navigated a challenging quarter of unusual weather much better than peers
** RBC downgrades both US and French construction companies Knife River KNF.N and Saint-Gobain SGOB.PA to "sector perform" from "outperform" due to acute cost headwinds like higher diesel and natural gas prices
(Reporting by Dimitri Rhodes in Gdansk)
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