JPM sees 'further upside on the horizon' for European cement companies
** J.P.Morgan says its analysis implies further upside for the European cement sector, pointing to improving industry fundamentals, potential upside to current consensus expectations for next year and a "catalyst-rich" H1
** The broker adds Heidelberg Materials HEIG.DE to its focus list, saying shares are now its top pick within the sector
** "We see the shares as one of the biggest opportunities given improving industry fundamentals and pricing power for the European Cement Industry," it says, also pointing to upside from carbon-captured net zero cement and concrete from H1 2025
** JPM upgrades Holcim HOLN.S to "overweight" from "neutral", seeing a compelling valuation after its underperformance compared to peers year to date, despite some uncertainties regarding itsNorth America split
** It also raises Buzzi BZU.MI to "neutral" from "underweight" citing benefits from further acceleration in US infrastructure spending, even if it remains its least preferred name in the space
** The broker keeps its "overweight" rating on CRH CRH.N, but removes it from its focus list
COMPANY | RATING | OLD RATING | PT | OLD PT |
|---|---|---|---|---|
Holcim | Overweight | Neutral | 108 francs | 81 francs |
Buzzi | Neutral | Underweight | 46 euros | 33 euros |
Reporting by Chiara Holzhaeuser, Alberto Chiumento
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