LafargeHolcim: Barclays still a seller
(CercleFinance.com) - Barclays is still negative towards LafargeHolcim case, on which "difficulties remain," analysts say.
The broker therefore maintains its sell rating ("underperformance") on the stock, with a corresponding target price of 42 Swiss francs, which suggests downside potential of 13%.
Analysts have been unkind after the publication of the cement maker's annual accounts: "We continue to struggle to find a constructive angle into the stock," LafargeHolcim, the broker says in its note.
“We continue to struggle to find a constructive angle into the stock: valuation is rich relative to peers, underlying performance is not better (despite good achievement on cost cutting), reflective of a structurally challenged geo-mix,” the broker argues, which has cut its EPS estimates by 4%.
In the sector, Barclays prefers CRH and HeidelbergCement.
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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 therefore maintains its sell rating ("underperformance") on the stock, with a corresponding target price of 42 Swiss francs, which suggests downside potential of 13%.
Analysts have been unkind after the publication of the cement maker's annual accounts: "We continue to struggle to find a constructive angle into the stock," LafargeHolcim, the broker says in its note.
“We continue to struggle to find a constructive angle into the stock: valuation is rich relative to peers, underlying performance is not better (despite good achievement on cost cutting), reflective of a structurally challenged geo-mix,” the broker argues, which has cut its EPS estimates by 4%.
In the sector, Barclays prefers CRH and HeidelbergCement.
Copyright (c) 2019 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.