LafargeHolcim: citing risks, Oddo BHF remains neutral

(CercleFinance.com) - This morning the broker Oddo BHF confirms its neutral rating on the share of cement maker LafargeHolcim.

Despite some positive points, risks identified by analysts prevent them from being more enthusiastic about the share, for which they maintain their target price of 47 Swiss francs.

The cement maker has published 2018 accounts that are broadly in line with expectations, while stressing that, "for the first time" the group is offering to pay its 2018 dividend in shares. Oddo's report says, that it still thinks that the group's dividend of two Swiss francs cannot be financed, although its payment in shares is a viable option in our opinion, says a note. In addition, LafargeHolcim has confirmed forecasts for 2019 that analysts consider to be consistent with its 2022 strategy.

Even though there are grounds to be tempted by the share, the broker currently remains neutral on LafargeHolcim. This is despite one major asset: the tandem formed by Jan Jenisch (CEO) and Géraldine Picaud (CFO). First, the group's earnings momentum does not appear favourable in the near term (Mexico, Algeria and Nigeria), and secondly there are uncertainties around Syria (financing of terrorism) that weigh on the share, it concludes.



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