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Investing.com - JPMorgan has initiated coverage on CRH Plc. (NYSE:CRH) with an Overweight rating and a price target of GBP96.45, citing the company’s strong market positions and diversification strategy. Currently trading at $117.87, the construction materials giant commands a market capitalization of $79 billion. According to InvestingPro data, analysts’ price targets range from $90 to $152.
The firm highlights CRH’s operations across North America (75% of EBITDA), Europe, and Australia, with product lines spanning essential materials, road solutions, and outdoor living, providing geographical and end-market diversification. The company generated $36.35 billion in revenue and $7.07 billion in EBITDA over the last twelve months, demonstrating its substantial market presence.
JPMorgan notes that CRH has established itself as the largest materials player in North America and Europe with leading market positions across its brand and product portfolios, while its vertical integration enables the company to capture a larger share of project revenue. InvestingPro analysis rates CRH’s overall financial health as "GREAT," with particularly strong scores in profitability and price momentum. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
The price target implies the shares would trade at a forward 11.4x EV/EBITDA multiple, according to JPMorgan’s analysis using a sum-of-the-parts valuation and discounted cash flow calculation. Based on InvestingPro’s Fair Value model, the stock currently appears to be trading above its intrinsic value.
The research firm describes CRH as a "growth compounder" that has effectively managed its portfolio, acquiring approximately $18 billion in assets from 2014-2022 at an average multiple of about 8x EV/EBITDA while divesting around $12 billion of assets at an average multiple of approximately 11x EV/EBITDA. The company’s current EV/EBITDA multiple stands at 13.4x.
In other recent news, CRH plc has been the focus of several analyst updates. UBS initiated coverage on CRH with a Buy rating and a price target of $138, highlighting its strong exposure to the U.S. infrastructure sector. Morgan Stanley reiterated its Overweight rating on CRH, maintaining a price target of $134, while RBC Capital raised its price target significantly to $152, citing a positive growth outlook following CRH’s Capital Markets Day. Bernstein also maintained an Outperform rating with a $130 price target, noting potential positive catalysts from the upcoming Capital Markets Day.
Separately, Fabrinet announced the appointment of Caroline Dowling to its Board of Directors. Dowling, who brings over 20 years of experience from her previous role at Flex, is expected to contribute significantly to Fabrinet’s strategic direction. These developments reflect ongoing strategic and operational shifts within both companies.
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