JPM still leans towards 'heavy' names in European building materials; ups Buzzi, Sika

Sika AG

11/09/2025 08:37

** J.P.Morgan continues to favor the "heavyside" sub-sector among European building materials, though notes its outpeformance over the "lightside" names might moderate

** In its latest review, it upgrades Italy's Buzzi BZU.MI to "overweight", which rises around 6%, and maintains Germany's Heidelberg HEIG.DE as its top pick

** JPM cites cheaper valuation for Buzzi compared to sector staples like Heidelberg and Holcim HOLN.S, and high exposure to Germany

** In the "lightside" space it upgrades Sika SIKA.S to "neutral" citing the stock's underperformance

** France's Saint-Gobain SGOB.PA remains JPM's key "lightside" pick as it flags valuation upside on strategy execution and an upcoming volume increase

COMPANY
RATING
OLD RATING
PT
OLD PT
BUZZI BZU.MI
Overweight
Neutral
54 EUR/Shr
45 EUR/Shr
SIKA SIKA.S
Neutral
Underweight
186 CHF/Shr
-
HEIDELBERG HEIG.DE
Overweight
-
235 EUR/Shr
217 EUR/Shr
HOLCIM HOLN.S
Overweight
-
75 CHF/Shr
70 CHF/Shr
SAINT-GOBAIN SGOB.PA
Overweight
-
115 EUR/Shr
-

 (Reporting by Enrico Sciacovelli)

 ((Enrico.sciacovelli@thomsonreuters.com))