Saint-Gobain: Deutsche Bank downgrades its recommendation
(CercleFinance.com) - Deutsche Bank announced on Wednesday that it had downgraded its recommendation on Saint-Gobain shares from "buy" to "hold", with the price target raised from 95 to 96 euros.
In a study of the European building materials sector, the broker points out that the favorable effect of price rises was largely effective in 2024, even if its impact tended to fade in the second half of the year.
It also points out that the basis for comparison enjoyed by players in the sector until now is now set to disappear.
For 2025, the broker's main themes are an economic outlook that remains unchanged, despite the postponement of certain projects, notably in residential construction, due to persistently high interest rates.
With regard to inflation, Deutsche Bank continues, the ability of companies to pass on cost increases in their rates will also remain a key factor.
Finally, while Deutsche Bank believes that political uncertainty has passed with the outcome of the US presidential election, it warns that certain implications in terms of interest rates and the evolution of the dollar have yet to be determined.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
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.
In a study of the European building materials sector, the broker points out that the favorable effect of price rises was largely effective in 2024, even if its impact tended to fade in the second half of the year.
It also points out that the basis for comparison enjoyed by players in the sector until now is now set to disappear.
For 2025, the broker's main themes are an economic outlook that remains unchanged, despite the postponement of certain projects, notably in residential construction, due to persistently high interest rates.
With regard to inflation, Deutsche Bank continues, the ability of companies to pass on cost increases in their rates will also remain a key factor.
Finally, while Deutsche Bank believes that political uncertainty has passed with the outcome of the US presidential election, it warns that certain implications in terms of interest rates and the evolution of the dollar have yet to be determined.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
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.