JPMorgan reinstates Holcim stock with overweight rating on valuation

Published 24/06/2025, 08:50
JPMorgan reinstates Holcim stock with overweight rating on valuation

Investing.com - JPMorgan has reinstated coverage of Swiss building materials company Holcim Ltd (SIX:HOLN) with an overweight rating and a price target of CHF65.00, implying 20% upside potential.

The investment bank’s decision is based on Holcim’s attractive valuation compared to Swiss peers Geberit (SIX:GEBN) and Sika (SIX:SIKA), with the company trading at a 52% discount on an EV/EBITDA basis while offering more attractive free cash flow and dividend yields.

While Holcim trades at a premium to competitor Heidelberg (ETR:HDDG) Materials (8.5x versus 7.3x), JPMorgan views the valuation as justified due to improving industry fundamentals and a relatively more optimistic outlook for Europe compared to the United States in the short term.

The bank also cited Holcim’s Swiss listing as supporting a premium valuation, along with the company’s year-to-date underperformance versus other European cement stocks.

JPMorgan expressed a positive outlook for European cement stocks in general, naming Heidelberg Materials as its top pick in the sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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