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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