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On Wednesday, Deutsche Bank (ETR:DBKGn) analyst Matthias Pfeifenberger updated the financial outlook for Heidelberg (ETR:HDDG) Materials AG (HEI:GR) (OTC: HDELY), increasing the price target from EUR137.00 to EUR140.00 while maintaining a Buy rating on the stock. The revision comes as the company prepares to release its full-year results on February 25.
Pfeifenberger's report anticipates flat organic sales for the fourth quarter, aligning with the performance seen in the third quarter. Despite this, an overall sales growth of approximately 3.6% is expected for the company. This growth accounts for a slight negative impact of 0.4% from foreign exchange fluctuations, predominantly from African nations.
The analyst also forecasts a positive scope of around 4.0%, translating to roughly EUR200 million at the sales line. This boost is attributed to strategic acquisitions made by Heidelberg Materials in North America, specifically in the aggregates sector, as well as in the UK recycling industry and in Indonesia.
For the European market, modest year-over-year volume growth is projected, marking the first increase after several quarters. This uptick is believed to be driven by improved conditions in Eastern Europe, stability in the Benelux and Italy regions, while acknowledging ongoing challenges in France and difficult comparisons in the UK market.
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