In a report released today, Cedar Ekblom from Morgan Stanley maintained a Hold rating on Holcim (0QKY – Research Report), with a price target of CHF101.00.
Cedar Ekblom has given his Hold rating due to a combination of factors related to Holcim’s strategic plans and financial projections. The company’s mid-term targets suggest a balanced approach between growth and sustainability, with an average annual revenue growth of 3-5% and EBIT growth of 6-10%. While these targets indicate a focus on margin improvement, they align closely with Morgan Stanley’s expectations, particularly in terms of revenue growth.
Additionally, Holcim’s capital allocation strategy, which includes significant investments in dividends, growth capex, and strategic M&A, reflects a prudent approach to cash management. The emphasis on sustainability, particularly the goal of low carbon cement and concrete sales and recycling initiatives, is commendable but does not significantly alter the current valuation. Overall, the Hold rating suggests that while Holcim’s plans are promising, they are largely in line with market expectations, warranting a cautious stance.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a CHF103.00 price target.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0QKY in relation to earlier this year.