Berenberg initiates Amrize stock with Buy rating on growth outlook

Published 30/06/2025, 08:44
Berenberg initiates Amrize stock with Buy rating on growth outlook

Investing.com - Berenberg initiated coverage on Amrize Ltd (OTCBB:AMRZ) with a Buy rating and a $64.00 price target on Monday, representing a potential 30% upside from the current price of $49.01. The company, with a market capitalization of $27.05 billion, has caught analysts’ attention with its strong financial performance.

The research firm cited a robust mid-term profit outlook for Amrize, projecting average EBITDA growth of 8% per year based on three key factors supporting its investment thesis.

Berenberg identified a supportive construction market in the US as the first growth driver for the company, followed by robust pricing power in Amrize’s key product categories.

The firm also highlighted additional growth potential from Amrize’s bolt-on acquisition strategy as the third factor contributing to its positive outlook.

Berenberg noted that Amrize maintains a strong balance sheet that provides flexibility for further mergers and acquisitions or share buybacks, while the stock currently trades at a valuation discount compared to its US peers.

In other recent news, BofA Securities initiated coverage on Amrize Ltd with a Neutral rating, setting a price target of $56.00. The research note highlighted strong fundamentals in Amrize’s core product lines, including cement, aggregates, and commercial roofing materials. Analysts pointed out the company’s significant merger and acquisition opportunities, supported by robust free cash flow and a solid balance sheet. However, they noted near-term uncertainties in the U.S. market volumes as a potential challenge. Valuation considerations were also discussed, with Amrize stock trading at a limited discount to its Sum-of-the-Parts valuation and at a premium compared to industry peer CRH (NYSE:CRH). These recent developments provide a comprehensive view of the factors influencing Amrize’s current market standing.

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