LafargeHolcim: Credit Suisse starts coverage with buy rating
(CercleFinance.com) - As part of a report on the sector of European cement companies, Credit Suisse has initiated its coverage of the LafargeHolcim share with a buy rating ("outperform"), which is its best pick, while attributing neutral ratings to the CRH and HeidelbergCement shares.
The broker has set a corresponding target price at 64 Swiss francs, which means upside potential of around 30%.
Saying that the current year will be more profitable for sector players, according to Credit Suisse; particularly thanks to higher prices, cost reductions and recent merger transactions. And this is despite growth in demand for cement (excluding China), which is estimated at just 2.8% this year, after 3.3% in 2018. In addition, the less difficult weather conditions that have hitherto marked 2019, relative to 2018, should also boost earnings expectations, especially in the United States.
In this context, LafargeHolcim becomes Credit Suisse's best pick, with the group having the potential to further improve the quality of its asset portfolio, analysts say.
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.
The broker has set a corresponding target price at 64 Swiss francs, which means upside potential of around 30%.
Saying that the current year will be more profitable for sector players, according to Credit Suisse; particularly thanks to higher prices, cost reductions and recent merger transactions. And this is despite growth in demand for cement (excluding China), which is estimated at just 2.8% this year, after 3.3% in 2018. In addition, the less difficult weather conditions that have hitherto marked 2019, relative to 2018, should also boost earnings expectations, especially in the United States.
In this context, LafargeHolcim becomes Credit Suisse's best pick, with the group having the potential to further improve the quality of its asset portfolio, analysts say.
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.