Deutsche Bank initiates coverage on Amrize stock with Buy rating

Published 01/07/2025, 09:02
Deutsche Bank initiates coverage on Amrize stock with Buy rating

Investing.com - Deutsche Bank (ETR:DBKGn) initiated coverage on Amrize Ltd (SWX:AMRZ) with a Buy rating and a price target of CHF49.00 on Tuesday.

The research firm identified Amrize as the leading building solutions company in North America, noting its dominant position in the cement market with approximately 19% market share in the U.S. and over 30% in Canada.

Deutsche Bank highlighted Amrize’s strong presence in 85% of the aggregates markets where it operates, along with its growing position in the roofing sector, particularly in commercial roofing, achieved through three key acquisitions over the past five years.

The bank expects Amrize to continue executing multiple bolt-on acquisitions in fragmented aggregates and ready-mix markets, as well as expanding its residential roofing business and other building envelope segments, without requiring new equity issuance.

According to Deutsche Bank, Amrize is likely to pay quarterly dividends at approximately 1% yield, in line with industry peers, while prioritizing share buybacks as its primary returns mechanism, with an estimated $500 million annually beginning in 2026.

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