Analyst Tobias Woerner of Stifel Nicolaus maintained a Buy rating on Wienerberger AG (WBRBF – Research Report), boosting the price target to €41.00.
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Tobias Woerner’s rating is based on several compelling factors that favor Wienerberger AG’s stock. One of the primary reasons is the company’s significant exposure to the anticipated recovery in the European housing market, which is a key theme within Woerner’s coverage. Wienerberger has a substantial part of its operations linked to residential construction and new builds, with a major focus in Europe. This positions the company to benefit greatly from any positive trends in the sector.
Moreover, the recent data from various European regions, such as Eastern Europe, the Benelux, Germany, and the UK, show promising signs of recovery in construction activities, suggesting potential stabilization and growth in pricing. Despite the challenges posed by several one-off financial impacts, such as divestments and impairments, Wienerberger’s valuation offers a significant margin of safety. The potential for a strong rebound in earnings due to high leverage in the event of market recovery further supports the Buy rating, although risks remain in the current economic environment.
In another report released on January 22, UBS also maintained a Buy rating on the stock with a €30.00 price target.