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Investing.com - DA Davidson downgraded CRH plc (NYSE:CRH) from Buy to Neutral on Thursday, setting a price target of $105.00 for the building materials company. According to InvestingPro data, the stock currently trades at $96.47, with analyst targets ranging from $87.50 to $130.50, reflecting mixed market sentiment. The company maintains a "GREAT" financial health score.
The research firm cited anticipated slower near-term organic growth as the primary reason for the rating change, suggesting limited potential for further material re-rating in the near term.
DA Davidson noted that while CRH still has tools like mergers and acquisitions and share buybacks at its disposal, these may not be enough to offset the moderating growth rates expected ahead.
The downgrade comes as the firm revisited its estimates and price targets for CRH against the backdrop of changing market conditions in the building materials sector.
The research firm indicated it would reconsider its position with greater clarity around growth drivers in the Americas end markets or if the stock trades at a wider discount to its revised price target.
In other recent news, CRH plc reported a first-quarter net loss of $98 million, or $0.15 per share, which was wider than analysts’ expectations. Despite this, the company reaffirmed its full-year 2025 guidance, with projected net income between $3.7 billion and $4.1 billion. Revenue for the quarter rose by 3% to $6.8 billion, driven by acquisitions and strong commercial management. Meanwhile, Morgan Stanley (NYSE:MS) has raised its price target for CRH to $110, citing expected EBITDA growth and a weaker U.S. dollar boosting International Solutions EBITDA. Bernstein initiated coverage on CRH with an Outperform rating and a price target of $115, highlighting the company’s strong position in the North American infrastructure market. CRH’s CEO noted that U.S. residential construction recovery might be delayed due to high interest rates and inflation. The company completed eight acquisitions in Q1, totaling $0.6 billion, and continued its share buyback program, purchasing $0.5 billion in shares. CRH also declared a quarterly dividend of $0.37 per share, marking a 6% increase year-over-year.
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