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RBC Capital lowered its price target on Breedon Group (BREE:LN) to GBP5.75 from GBP6.25 on Tuesday, while maintaining an Outperform rating on the construction materials company’s stock.
The price target reduction reflects weather-related challenges affecting Breedon’s operations across multiple regions, according to RBC Capital. The investment firm cited "rain and ice in the US, climate change challenges in Ireland and low ready mix volumes in GB" as factors behind its revised estimates.
RBC Capital made the adjustment as part of its preparation for the upcoming half-year reporting season, noting that these operational difficulties have prompted a trimming of financial projections for the company.
Despite lowering the price target, RBC Capital maintained its Outperform rating, characterizing the challenges as "temporary" issues that may pressure the share price in the near term but do not fundamentally alter the medium-term investment thesis.
The research firm suggested that any weakness in Breedon’s share price resulting from these temporary challenges should be viewed as "a buying opportunity" for investors.
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