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Investing.com - Bernstein SocGen Group has raised its price target on Amrize Ltd (NYSE:AMRZ) to $65.00 from $62.00 while maintaining an Outperform rating on the stock. The company, currently trading at $53.89 and commanding a market cap of $29.46 billion, maintains a strong "Buy" consensus among analysts with targets ranging from $49 to $65. InvestingPro data indicates the stock is trading above its Fair Value.
The firm cited Amrize’s relative underperformance compared to industry peers since its June 23 spin-off as contributing to its increased conviction on the stock. While Amrize shares rose 5% during this period, competitors Holcim, CRH, and Heidelberg saw gains of 37.5%, 26%, and 14% respectively. InvestingPro analysis shows the company maintains a GOOD financial health score, with particularly strong profitability metrics.
Bernstein highlighted Amrize’s dominant cement position and exposure to structurally strong inland markets as key factors providing the company with superior pricing power and extraordinary margins.
The research firm noted that Amrize’s high share of variable costs makes production more flexible than generally believed, helping the company maintain margins, while its light side business benefits from exposure to strong end markets.
In its analysis, Bernstein adjusted its growth assumptions for fiscal years 2025-2026 downward while increasing projections for future years, and slightly reduced the weighted average cost of capital (WACC) in its valuation model.
In other recent news, Amrize Ltd has been the focus of several analyst evaluations and a notable partnership. Bernstein SocGen Group reiterated its Outperform rating on Amrize with a price target of $62, describing the recent negative reaction in the stock price as an overreaction. Meanwhile, RBC Capital lowered its price target for Amrize to $54, citing concerns over the company’s guidance and suggesting that better communication with investors could have prevented the stock’s weakness. Additionally, JPMorgan initiated coverage on Amrize with an Overweight rating and a $57 price target, emphasizing the company’s growth prospects and strong market position.
Amrize has also partnered with Meta to develop an AI-optimized concrete mix for Meta’s data center in Rosemount, Minnesota. This collaboration aims to deliver high-strength concrete while reducing carbon emissions by 35%. The project included a partnership with The Grainger College of Engineering at the University of Illinois Urbana-Champaign to generate data for the AI model. Bernstein also initiated coverage on Amrize, highlighting its dominant position in structurally strong inland markets and its pricing power advantages. These recent developments indicate a mix of analyst confidence and strategic partnerships for Amrize.
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