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Investing.com - Goldman Sachs initiated coverage on Heidelberg Materials AG (ETR:HEI) (OTC:HDELY) with a Buy rating and set a price target of EUR240.00.
The investment bank sees Heidelberg Materials benefiting from both cyclical and structural tailwinds, positioning the cement manufacturer as a multi-year growth story through 2030.
Goldman Sachs forecasts a compound annual growth rate of 6% for earnings before interest and taxes (EBIT) from fiscal year 2024 through 2030, slightly below the company’s own targets of 7%-10% growth including mergers and acquisitions.
The firm’s analysis places its EBIT estimates approximately 2% below consensus for fiscal years 2025 and 2026, citing expectations for a more modest recovery in the U.S. market.
Despite these near-term projections, Goldman Sachs remains 2% above the consensus EBIT estimate for fiscal year 2027, expressing confidence that Heidelberg Materials will successfully grow its price/cost ratio throughout the business cycle.
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