CRH stock price target raised to $132 by BofA on strong Q3 results

Investing.com - BofA Securities has raised its price target on CRH plc (NYSE:CRH) to $132.00 from $128.00 while maintaining a Buy rating following the company’s third-quarter results. CRH shares currently trade at $115.67, approaching their 52-week high of $121.99. InvestingPro data shows the stock has delivered a strong 23.79% return over the past six months.

CRH reported EBITDA of $2.695 billion in the third quarter, representing a 10% year-over-year increase on a 5% revenue gain. The company’s organic growth turned positive at approximately 1.2% after five consecutive quarters of declines, while EBITDA margins improved by 100 basis points compared to the same period last year. For the last twelve months, CRH has generated $7.07 billion in EBITDA on $36.35 billion in revenue.

The construction materials company updated its 2025 guidance, keeping net income projections unchanged at $3.8-$3.9 billion while slightly raising its EBITDA forecast to $7.6-$7.7 billion from the previous $7.5-$7.7 billion range. The current consensus estimate sits near the lower end at $7.59 billion. With a market capitalization of $75.5 billion, CRH trades at an EV/EBITDA multiple of 13.3x based on trailing twelve-month figures.

BofA Securities noted that while the guidance update likely won’t surprise investors, it provides reassurance given the headwinds in the residential construction sector and demonstrates CRH’s execution capabilities.

The firm maintained its Buy rating on CRH stock, citing the company’s positive performance despite uncertainty in the construction market, particularly with residential headwinds in both new builds and repair and remodel segments.

In other recent news, CRH has completed a $0.3 billion share buyback, adding to the company’s ongoing share repurchase program, which has returned a total of $9.4 billion to shareholders since 2018. This development highlights CRH’s continued focus on returning capital to its investors. Additionally, JPMorgan has initiated coverage on CRH with an Overweight rating, citing the company’s strong market positions and diversification strategy, particularly in North America. UBS also initiated coverage with a Buy rating and a price target of $138, identifying CRH as its top sector pick due to the company’s exposure to the U.S. infrastructure market. Morgan Stanley reiterated its Overweight rating on CRH, maintaining a price target of $134, reflecting a positive outlook on the company’s prospects. Meanwhile, Fabrinet has announced the appointment of Caroline Dowling to its Board of Directors, leveraging her extensive experience from her previous role at Flex. These developments provide investors with a comprehensive view of the strategic moves and market perceptions surrounding these companies.

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