Heidelbergcement: Commerzbank upgrades stock.
(CercleFinance.com) - Commerzbank has upgraded its rating on the HeidelbergCement stock from "hold" to "buy," and has raised its target price from 81 euros to 109 euros, highlighting the much better prospect for lower energy costs, as a major surprise, from the group's latest publication.
With this factor in the fourth quarter of 2017, running into 2018, UBS sees a better earnings outlook, also estimating that construction spending in the US will accelerate once again and that the recovery of emerging markets set to last.
On this basis, the broker is raising its forecast for operational EBITDA for the German building materials group over the period 2017-2020, from 1% to 6%, to a level that is 3% higher than the consensus for 2018.
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