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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on CRH plc (NYSE:CRH) to $110.00 from $106.00 while maintaining an Overweight rating on the stock. Currently trading at $91.52, CRH has received strong overall analyst support, with targets ranging from $87.50 to $130.50. According to InvestingPro data, the company maintains a "GOOD" financial health score.
The firm’s updated forecast reflects a 1% increase in FY25 EBITDA and a 2% increase for FY26, with a weaker U.S. dollar boosting International Solutions EBITDA. Morgan Stanley’s FY25 EBITDA estimate is 3% above Visible Alpha consensus, largely due to merger and acquisition activity. The company’s current EBITDA stands at $6.78 billion for the last twelve months, with a solid 35.6% gross profit margin.
For Q2, Morgan Stanley forecasts EBITDA of $2.41 billion, in line with consensus, with projected organic revenue growth of 2.6% and EBITDA growth of 1.1%. The firm expects lower EBITDA margins year-over-year due to reduced land sales in Americas Materials, the impact of Adbri in International Solutions, and continued negative organic trends in Americas Building Solutions.
Despite these factors, Morgan Stanley believes CRH can deliver EBITDA at the top end of guidance. The firm’s FY25/26 EPS estimates were revised downward by 5% and 2% respectively.
The new price target of $110 reflects the rerating of sum-of-the-parts peers, with a corresponding target of £82 in British pounds.
In other recent news, CRH plc reported a first-quarter net loss of $98 million, or $0.15 per share, which was wider than analysts’ expectations of a $0.08 loss. Despite this, the company saw a 3% increase in revenue to $6.8 billion, driven by acquisitions and strong commercial management, although seasonal factors posed challenges. CRH reaffirmed its full-year 2025 guidance, projecting net income between $3.7 billion and $4.1 billion and adjusted EBITDA of $7.3 billion to $7.7 billion. The company also highlighted its ongoing share buyback program and declared a quarterly dividend of $0.37 per share, marking a 6% increase from the previous year.
Bernstein SocGen Group recently initiated coverage on CRH with an Outperform rating and a price target of $115, citing the company’s strategic position in the North American market. The firm’s analysis points to CRH’s involvement in U.S. infrastructure projects, which is expected to benefit from government spending under the Infrastructure Investment and Jobs Act. Meanwhile, CRH’s CEO, Jim Mintern, noted that the recovery of the U.S. residential construction market might take longer than anticipated due to high interest rates and inflation, with improvements now expected by 2026. Despite these challenges, CRH completed eight acquisitions worth $0.6 billion in the first quarter, indicating continued growth efforts.
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