Building Materials

Q3 trading mixed – stick with CRH and Buzzi Unicem

  • Sectors : Building Materials
  • Companies : CRH | HeidelbergCement AG | LafargeHolcim | Saint-Gobain Group | Buzzi Unicem


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 1954c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 2963c
HeidelbergCement AG OUTPERFORM 16/06/17 Neutral 05/02/14 6114c
LafargeHolcim NEUTRAL 09/01/19 Underperform 17/11/15 4525chf
Saint-Gobain Group NEUTRAL 09/01/19 Outperform 07/09/15 3423c


Ahead of Q3 sector updates, we have cut estimates for HeidelbergCement (HEI) and LafargeHolcim (LHN). Both face stiffer foreign exchange headwinds and more mixed markets – not just emerging but also in Canada, Australia and the UK. A strong Q3 out-turn in the US is unlikely to be enough to offset. That US strength does, however, positively benefit both CRH and Buzzi Unicem (BZU), where we see estimates well underpinned. We have made no changes to our Saint-Gobain forecasts, believing numbers to be sensible. That is despite weak economic updates that suggest the balance of risk is tilting to the downside in Europe.

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Oct 7 2019, 06:30 IST/BST