Building Materials

Counting the cost

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


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Breedon Group OUTPERFORM 22/11/19 Neutral 25/10/17 82.0p
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 1966c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 3637c
HeidelbergCement AG NEUTRAL 04/02/20 Outperform 16/06/17 4910c
LafargeHolcim OUTPERFORM 20/04/20 Neutral 09/01/19 4313chf
Saint-Gobain Group UNDERPERFORM 08/07/20 Neutral 09/01/19 3341c


From the April lows, Q2 construction activity has rebounded quicker than we first thought. That suggests the potential to surprise positively, especially for companies with large exposure to Central Europe and the US. Less clear is the impact on margins and especially cashflow. In that regard, we expect results to highlight those high-quality companies with the ability to adapt quickly and protect cash in turbulent times. Despite the quicker recovery, we expect the companies to guide cautiously given still high levels of uncertainty. We continue to see CRH and Buzzi Unicem as best-placed in the sector. We cut Saint-Gobain to ‘Underperform’ given concerns around industrial markets, glass prices and following strong recent share price gains.

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Jul 8 2020, 06:30 IST/BST