Saint-Gobain: Berenberg initiates coverage as a seller

(CercleFinance.com) - Berenberg has begun to monitor the Saint-Gobain share with a "sell" rating and a target price of 33 euros, in a report on the European construction sector on which it takes "a broadly negative skew on the sector heading into 2021".


"We think current forecasts and multiples reflect too much optimism about the shape of a post-COVID-19 recovery," says the broker, which anticipates disappointing global construction spending for the year ahead.

Berenberg forecasts the sector's average earnings growth at 1% in 2021, against a consensus of 6%. It adopts "buy" recommendations on HeidelbergCement, "hold" on CRH and LafargeHolcim, and "sell" on Ferguson.


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