Saint-Gobain: Goldman Sachs initiates at 'buy'

(CercleFinance.com) - Goldman Sachs has initiated coverage of the Saint-Gobain share with a first 'buy' recommendation, highlighting the transformation of the construction materials group and its weak valuation.
The price target of 42 euros potentially augurs a growth of 23%.

The analysts firstly point out the cost-cutting measures put in place by the management, which should lead to higher operating results. Goldman Sachs also cites the “transformation” Saint-Gobain is going through, which includes selling underperforming businesses.

Finally, the share's 2020 P/E, which according to Goldman Sachs' forecasts comes to 10 times, represents a discount of approximately 30%, both from a historical perspective and relative to industrial peers.

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