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Oct 7 2019, 06:30 IST/BST
Building Materials
Q3 trading mixed – stick with CRH and Buzzi Unicem
- Sectors : Building Materials
- Companies : Buzzi Unicem | Holcim | Heidelberg Materials | CRH | Saint-Gobain Group
Ratings
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 |
| Heidelberg Materials | OUTPERFORM | 16/06/17 | Neutral | 05/02/14 | 6114c |
| Holcim | NEUTRAL | 09/01/19 | Underperform | 17/11/15 | 4525chf |
| Saint-Gobain Group | NEUTRAL | 09/01/19 | Outperform | 07/09/15 | 3423c |
DAVY VIEW
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.
