Gold prices hold losses as US-EU trade deal eases safe‑haven demand
On Tuesday, Bernstein analysts initiated coverage on HeidelbergCement (ETR:HEIG) AG (HEI:GR) (OTC:HDELY) with a Market Perform rating, accompanied by a price target set at €180.00. The new rating reflects a neutral stance on the stock, indicating neither an overtly positive nor negative forecast for its performance in the market.
The analysts at Bernstein highlighted the company’s varied geographic exposure, which includes both high-potential markets such as the United States and the United Kingdom (TADAWUL:4280), as well as more challenging environments like India and Brazil. In their assessment, HeidelbergCement’s market positions are comparatively weaker than those of its peers within the heavy side construction materials sector.
Particularly concerning for Bernstein is HeidelbergCement’s involvement in the Indian cement market, which represents 4% of the company’s sales. The market in India is described as highly fragmented and competitive, with numerous players engaged in aggressive price competition. Bernstein notes this as a significant point of weakness for HeidelbergCement.
The analysts also reported on the company’s stance regarding its operations in India. Despite acknowledging the challenging nature of the Indian market, HeidelbergCement management has expressed no intention to exit. They believe that leaving the market would preclude re-entry into a region with strong growth potential and present difficulties in reallocating the capital that would be freed up by such a divestiture.
Bernstein’s initiation of coverage on HeidelbergCement with a Market Perform rating suggests a cautious approach to the stock, considering the company’s mixed market exposures and the particular challenges it faces in the Indian market. The price target of €180.00 serves as a benchmark for investors to gauge the stock’s potential value against current market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.