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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