European Building Products: Ongoing momentum to drive growth in Q1 - Citi

Titan SA

16/04/2021 09:22

** Citigroup raises its PTs across the European building
product makers, expecting the sector's ongoing momentum to drive
growth in Q1 and an improving long-term outlook
    ** The broker says valuations are still below historical
average despite their recent rebound and raises its forecasts by
around 10%
    ** "We continue to see the sector well positioned to benefit
from favourable demand environment along with improved industry
structure driving pricing power and further margin expansion in
the coming years", it adds
    ** Citi sees Q1 like-for-like revenue growth of around 4.7%
for the sector
    ** The broker names LafargeHolcim  LHN.S  its large-cap top
pick, adding it expects the group to deliver the highest
like-for-like EBITDA growth in 2021
    ** Among small caps, Vicat  VCTP.PA  is Citi's top pick as
it is one of the key beneficiaries of emerging markets' recovery

 ((olivier.cherfan@thomsonreuters.com))