Holcim: Oddo BHF upgrades stock

(CercleFinance.com) - Oddo BHF has upgraded Holcim shares from 'neutral' to 'outperform', with a target price raised from 73 CHF to 95 CHF, taking into account updated market data and the inclusion in the beta of the spin-off of North American activities.


According to the broker, this operation will undoubtedly unlock value in the medium term, and the 'bad co' 'will be much more attractive, with a dividend maintained at 3 CHF, in line with pre-spin-off Holcim.

At the current price, the 'bad co' would be valued at 4.4x EV/EBITDA (21% FCF and 15% dividend yield), a heresy compared to the average yield of the SMI index at 3.5%, and ahead of the pack at 6.4% for Swiss Re and 5.6% Swiss Life', the analyst continues.


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