Holcim: Oddo BHF raises target price
(CercleFinance.com) - Oddo BHF has confirmed its 'outperform' rating on Holcim shares, raising its target price from 100 CHF to 110 CHF in light of updated market data, following a roadshow with the Swiss building materials group's CEO.
The analyst is convinced that the spin-off of the US activities will crystallize value in the medium term through the distribution of a substantial dividend, seeing an implied valuation of Holcim Europe at the current price of 8x EV/EBITDA.
Based on the dividend yield, estimated at 6%, Oddo BHF believes that Holcim Europe's shares still look attractive compared with the average yield of the SMI index at 3.3%, with Swiss Re leading the way at 5.7% and Zurich Insurance Group at 5.6%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analyst is convinced that the spin-off of the US activities will crystallize value in the medium term through the distribution of a substantial dividend, seeing an implied valuation of Holcim Europe at the current price of 8x EV/EBITDA.
Based on the dividend yield, estimated at 6%, Oddo BHF believes that Holcim Europe's shares still look attractive compared with the average yield of the SMI index at 3.3%, with Swiss Re leading the way at 5.7% and Zurich Insurance Group at 5.6%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.