Buzzi soars with Jp Morgan promotion, target price rises to EUR 54
Analysts are optimistic about the performance of the entire sector and their estimates are pushing stocks in the sector, from Heidelberg Materials in Frankfurt to Holcim in Zurich. In particular, the Piedmont-based group is well positioned to benefit from government stimulus in Germany
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(Il Sole 24 Ore Radiocor) - Buzzi Unicem is flying at the Milan Stock Exchange after Jp Morgan upgraded its rating to 'overweight' from 'neutral' and its target price to €54 from €45. Cementir Holding also did well off the main list. The US investment bank issued a positive report on the building materials sector, boosting other European stocks as well, starting with Heidelberg Materials in Frankfurt, which moved closer to its August record and remains Jp Morgan's 'favourite' stock. Holcim in Zurich was also in the lead.
As for the Piedmont group, Jp Morgan points out that its strong exposure in Germany, within the 'heavy construction materials' segment, positions it well to benefit from government stimulus. Indeed, the German government has launched a maxi fund of EUR 500 billion for infrastructure and Buzzi Unicem is the second largest cement producer in Germany. In general, Jp Morgan confirms, in the report, the preference for producers of 'heavy building materials' such as cement, which have reduced the discount at which they trade compared to the 'light materials' segment. This appreciation, according to analysts, is "justified by improved earnings performance over the past five years, coupled with better earnings expectations for this year". Moreover, 'we have seen an improvement in investor perceptions towards the European cement sector during 2025, supported by decarbonisation efforts'. Looking ahead, 'we believe there is further room for outperformance' in the 'heavy materials' segment, 'albeit at a more moderate pace'.
