CRH: Stifel maintains buy rating, but cuts target price

(CercleFinance.com) - Stifel reiterates its buy rating on CRH shares, while trimming its target price for them from 48.
5 euros to 42.5 euros ahead of the Irish building materials supplier's H1 results, which are due out on 25 August.

"We expect a strong set of results driven by a positive price cost spread, while the Group's outlook is well-supported by its high exposure to infrastructure and RM&I driven stimulus," it said.

The broker recognises that housing is clearly a risk and is therefore reducing its earnings expectations for 2023, but less than for its peers. "The company's operating leverage was and remains supported by the continued structural margin uplift," it adds.

"Although we could see a certain setback post its recent bounce later in this or early next quarter, the stock remains amongst our top picks for H2-22," Stifel says.


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