HeidelbergCement: shares dip after Barclays downgrade

(CercleFinance.com) - The HeidelbergCement stock slipped on Monday after Barclays downgraded the German cement maker because of concerns of a slowdown of its US operations.


Barclays analysts told clients in a note, "the North American operations (historically the group's profit expansion engine) could see relatively muted earnings growth in 2020."

They have hence cut their rating on HeidelbergCement from "equal weight" to "underweight" and have reduced their corresponding target price from 72 euros to 65 euros.

In particular, the broker cited the impact of the expiry of the "FAST" act - a funding bill to govern US federal surface transportation spending - that was passed by Congress in 2015, under Barack Obama's presidency.

The HeidelbergCement stock is currently down 0.2% at 67.4 euros.

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