CRH: Jefferies raises target price
(CercleFinance.com) - Jefferies has reiterated its "buy" recommendation on Ireland's CRH (Cement Roadstone Holdings) shares, increasing its target price for them from 53.
1 euros to 54.8 euros, seeing it as "a cheap growth stock, with favourable momentum for forecasts".
After a better-than-expected Q1 2022 and an upbeat CMD, the broker has raised its 2022-23 EBITDA expectations by 2%-3%, which, along with upcoming share buybacks, leads it to raise its 2024 EPS estimates by over 10%.
"At 6.2x EV/EBITDA, half the multiple of stocks showing similar growth, the current growth trajectory & less cyclical profile is not reflected in the valuation. Upside to forecasts should accentuate this further," it adds.
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