Goldman Sachs initiates coverage on Holcim stock with Buy rating

Published 04/09/2025, 08:24
Goldman Sachs initiates coverage on Holcim stock with Buy rating

Investing.com - Goldman Sachs initiated coverage on Holcim Ltd (SIX:HOLN) with a Buy rating and set a price target of CHF75.00.

The investment bank expects Holcim to deliver sustained earnings growth through 2030, projecting a 6% compound annual growth rate for EBIT from fiscal year 2025 to 2030, which aligns with the company’s own target range of 6% to 10%.

Goldman Sachs believes the growth will primarily come from positive price/cost management and improved volumes in Europe, noting that despite recent share price strength, upside potential remains compelling.

The firm’s EBIT estimates for fiscal year 2027 are 2% to 3% below consensus, though Goldman Sachs points out that consensus figures likely don’t account for Holcim’s recent divestment of its Nigeria operations.

Lower interest expenses resulting from proceeds of the Nigeria divestment are expected to boost net profit after tax, with Goldman Sachs projecting FY27 NPAT approximately 5% ahead of consensus estimates.

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