Holcim stock rating upgraded by UBS on European cement market outlook

Published 14/10/2025, 07:02
Holcim stock rating upgraded by UBS on European cement market outlook

Investing.com - Swiss building materials company Holcim Ltd (SIX:HOLN) received an upgrade from UBS on Tuesday, with the investment bank raising its rating from Neutral to Buy.

UBS increased its price target for Holcim to CHF78.00 from the previous CHF60.00, representing significant upside potential for the cement manufacturer’s shares.

The upgrade is primarily based on UBS’s view that 2026 will mark "the start of a new European cement regime," with Holcim positioned as "the purest way in the sector" to capitalize on this trend due to its 55-60% direct earnings exposure to Europe.

UBS believes market consensus underestimates both the structural support to cement pricing and the returns that decarbonization leaders like Holcim will achieve next year, with UBS forecasting 8% higher EBIT in the Europe segment compared to consensus estimates.

The investment bank noted that Holcim’s return on invested capital (ROIC) has already doubled compared to 2015-17 levels and is projected to rise by approximately 300 basis points by 2030, supporting a "low double-digit percentage total shareholder returns story."

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