Street Calls of the Week
Investing.com - JPMorgan initiated coverage on Amrize Ltd (SWX:AMRZ) with an Overweight rating and a price target of CHF48.20.
The research firm highlighted Amrize’s structure, which consists of two primary segments: Building Materials representing 77% of EBITDA (including cement, aggregates, ready-mix concrete, and asphalt) and Building Envelope (offering roofing systems and insulation).
JPMorgan cited Amrize’s robust EBITDA growth prospects, both organic and inorganic, coupled with a strong free cash flow conversion rate exceeding 50% as factors making it an attractive investment.
The firm noted Amrize’s proven acquisitions track record, particularly its strategic entry into the roofing segment, which opens new avenues for capital allocation supported by substantial leverage capacity of approximately $6 billion.
JPMorgan’s price target is derived using a forward EV/EBITDA multiple of 10.1x, with the firm already maintaining active co-coverage of Amrize’s US listing.
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