Barclays sees value in European cement, but remains selective as expectations rise

Vicat SA

23/01/2025 07:38

** Barclays still sees value in European cement companies,
citing more pricing power for the sector, but remains selective,
as the expectations are getting higher
    ** It expects a solid Q4, with limited weather disruption
and robust pricing trends, but believes the price/cost
expectation hurdle has risen for 2025 given a tough volume
outlook
    ** The brokerage cuts German cement maker Heidelberg
Materials  HEIG.DE  to "equal-weight" from "overweight", citing
implications from potential peace in Ukraine, the magnitude of
impact from green premia on earnings, and the sustainability of
such premia into the medium term
    ** "Price/cost can work again in our view, but the hurdle to
surprise the market is much higher than in previous years,"
Barclays adds
    ** It raises French construction company Vicat  VCTP.PA  to
"overweight" from "equal-weight", as it sees shares lagging on
emerging markets demand risk and leveraged balance sheet as an
"entry opportunity"

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))