Buzzi on the upswing, analysts say the stock is undervalued

(Il Sole 24 Ore Radiocor) - Buzzi Unicem sprinted to the top of the FTSE MIB, with analysts putting the 2025 accounts under the spotlight, pointing out that the stock is undervalued. The 2025 numbers were broadly in line with expectations, while the 2026 forecasts were particularly cautious given the context. In detail, revenue and pfn were already disclosed, while ebitda came in at EUR 1.234bn (-3%), in line with guidance. Better than expected net profit (EUR 921m, down 2%).

For Equita, 'the geographic mix at the Ebitda level is slightly different from expectations and of better quality thanks to a greater contribution from the United States, Italia and Brazil against a lower contribution mainly from Russia'. On the other hand, the distribution of a €0.70 dividend was disappointing, below market expectations, with the company preferring to focus on a new €300m buyback. Equita confirms its buy rating on the stock with a target price cut to €55. Since the beginning of the year, the stock has lost 17%, substantially in line with the European cement sector, and for Equita 'now trades at attractive valuations, at a significant discount to both European peers and its own historical average'. For analysts, "such a discount is unjustified both because of the strong exposure to infrastructure investments in Europe and the US" preferable to residential in this macro environment, and because of the "high exposure to Germany, which offers leverage on a potential cyclical recovery supported by expansionary fiscal policies". In addition, Buzzi boasts "one of the strongest financial structures in the industry, with an expected net cash position in 2026 of around 17% of market cap, which provides protection and significant operational flexibility".

Analysts at Kepler Cheuvreux upgrade their rating from Hold to Buy, while Banca Akros confirms its accumulate rating with a target price of 54 euro, while waiting for greater visibility on 2026 estimates and volumes. Intermonte, on the other hand, cuts the target price from EUR 55 to EUR 50 (still well above the share's current levels) with a neutral rating. Analysts point out that "results are overall in line with expectations in terms of ebitda", and that the geographical mix is "slightly different than expected, with a better contribution from Italia, Poland and Brazil and greater weakness in Central Europe and Russia". Intermonte revises estimates downward, incorporating a greater caution on volumes in the US and costs in Europe, confirming its cautious approach on the stock in light of downside risks.