BUZZ-JPM sees 'further upside on the horizon' for European cement companies

Reuters11-20 17:04

** 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 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 to "overweight" from "neutral", seeing a compelling valuation after its underperformance compared to peers year to date, despite some uncertainties regarding its North America split

** It also raises Buzzi 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

, 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)

((Chiara.Holzhaeuser@thomsonreuters.com))

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