Gold bars to be exempt from tariffs, White House clarifies
Investing.com - DA Davidson has raised its price target on CRH plc (NYSE:CRH) to $110.00 from $105.00 while maintaining a Neutral rating on the stock. The construction materials giant, currently trading at $106.92 with a market cap of $72.21 billion, is approaching its 52-week high of $110.97. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The firm noted that CRH managed to achieve earnings per share growth of 3% and EBITDA growth of 9% despite challenging operating conditions that affected most materials companies. The company’s robust EBITDA of $7.07 billion and GREAT financial health score from InvestingPro underscore its operational strength.
DA Davidson highlighted that CRH faced "tumultuous operating conditions" along with "broader bifurcated private sector demand trends" during the period under review.
The research firm pointed out that mergers and acquisitions, as well as share buybacks, remain available options for CRH even as organic growth has stalled.
The price target increase reflects "modestly improved forecasts," though DA Davidson continues to maintain its Neutral stance on CRH shares at current trading levels.
In other recent news, CRH announced the completion of a $0.3 billion share buyback program, having repurchased 3.2 million ordinary shares. The company also revealed plans to initiate a new buyback program, aiming to repurchase up to another $0.3 billion worth of shares by November 2025. In a significant move, CRH has signed an agreement to acquire Eco Material Technologies for $2.1 billion, subject to regulatory approval, which is expected to close in 2025. This acquisition will be funded with cash on hand, and CRH does not foresee any changes to its credit ratings from the transaction.
Analyst activities have also been notable, with DA Davidson downgrading CRH from Buy to Neutral, citing a slower growth outlook. Conversely, Morgan Stanley (NYSE:MS) has raised its price target for CRH to $110, maintaining an Overweight rating due to expected EBITDA growth and merger and acquisition activity. Bernstein has initiated coverage of CRH with an Outperform rating and a $115 price target, highlighting the company’s strong position in the North American aggregates and asphalt market. Bernstein also notes CRH’s involvement in U.S. infrastructure projects as a stabilizing factor amid economic uncertainty. These developments reflect a dynamic period for CRH, with strategic acquisitions and varied analyst perspectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.