LafargeHolcim: BarCap cuts target price
(CercleFinance.com) - BarCap has reinstated its "underweight" rating on the LafargeHolcim stock and has cut its corresponding target price to 42 Swiss francs, following the group's 10% reduction in its EPS estimates and lower estimates in line with the sector's devaluation.
The broker acknowledges a number of positive items in the Q3 publication, noting that, "cost cutting made a visible difference and (some of) the pressure is easing in South East Asia and Algeria".
However, it says, "Nevertheless, the more uncertain EM macro outlook (Latam turning), persistence of trouble spots, limited balance sheet headroom and Syria risk remain key concerns, rendering the stock's current premium valuation unattractive."
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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 broker acknowledges a number of positive items in the Q3 publication, noting that, "cost cutting made a visible difference and (some of) the pressure is easing in South East Asia and Algeria".
However, it says, "Nevertheless, the more uncertain EM macro outlook (Latam turning), persistence of trouble spots, limited balance sheet headroom and Syria risk remain key concerns, rendering the stock's current premium valuation unattractive."
Copyright (c) 2018 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.