LafargeHolcim: Barclays raises target price
(CercleFinance.com) - Barclays reiterates its "overweight" recommendation on LafargeHolcim, while raising its target price from 49 Swiss francs to 54 Swiss francs, after it raised its estimate for recurrent operating income by 9% for the Franco-Swiss group.
"LafargeHolcim was one of the EU cement companies most severely impacted by COVID-19 in our coverage, and yet H1-20 FCF tripled," the broker said, which pointed out savings made that are "truly impressive".
"While LafargeHolcim's resilience in an adverse environment continues to be underestimated, in our view, we believe more active M&A could be the missing ingredient for a re-rating," it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"LafargeHolcim was one of the EU cement companies most severely impacted by COVID-19 in our coverage, and yet H1-20 FCF tripled," the broker said, which pointed out savings made that are "truly impressive".
"While LafargeHolcim's resilience in an adverse environment continues to be underestimated, in our view, we believe more active M&A could be the missing ingredient for a re-rating," it adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.