Analyst Tobias Woerner of Stifel Nicolaus maintained a Hold rating on Holcim (0QKY – Research Report), boosting the price target to CHF87.50.
Tobias Woerner has given his Hold rating due to a combination of factors influencing Holcim’s current financial position and future prospects. The company has recently delivered strong results, surpassing market expectations in several key areas such as recurring EBIT and free cash flow, which have been bolstered by significant margin expansions, particularly in North and Latin America. Despite these positive outcomes, the upcoming spin-off of Amrize is a pivotal event that introduces a level of uncertainty regarding the company’s future performance.
Moreover, while Holcim’s stock is currently reflecting a full recovery of volumes lost since the geopolitical tensions in Ukraine, there remains a potential downside risk if the spin-off does not proceed as anticipated. Woerner suggests that the preference might lean towards Holcim/RemainCo over Amrize, depending on how the spin-off trades initially. This cautious stance, combined with the consistent yet modest growth outlook and the strategic importance of the spin-off, underpins the Hold rating, indicating a balanced view of potential risks and rewards.
In another report released on February 24, CFRA also maintained a Hold rating on the stock with a CHF100.00 price target.
Based on the recent corporate insider activity of 14 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.