Truist Securities reiterates Buy rating on Amrize stock amid recent weakness

Investing.com - Truist Securities has reiterated its Buy rating and $60.00 price target on Amrize Ltd (NYSE:AMRZ), representing a 20% upside from the current price of $49.95. According to InvestingPro data, the company maintains a GOOD financial health score with a market capitalization of $28.4 billion.

The research firm noted that AMRZ shares have experienced weakness following negative comments from competitor CSL at a recent investor conference, though these comments came without specific quantification.

Truist pointed out that while CSL overlaps with approximately 30% of Amrize’s business in the Building Envelope segment, it expects improved weather conditions in the Building Materials segment to offset any negative impact.

The firm highlighted Amrize’s industry-leading cement margins as a standout feature, noting that the product is shedding its perception and history of cyclical pricing.

Truist also expressed confidence that investors are just beginning to discover AMRZ following its June spin-off from Holcim, suggesting the stock’s multiple will likely expand as market awareness increases.

In other recent news, Amrize has launched a new cement carrier vessel, the MV Tamarack, to enhance its building materials transportation capabilities on the Great Lakes. This new vessel, with a capacity exceeding 10,000 cubic meters, is the first of its kind in the region in 20 years and features advanced propulsion and energy-saving technologies. Additionally, Amrize has partnered with Meta to develop an AI-optimized concrete mix for data centers, aiming to reduce the carbon footprint by 35%. In terms of stock analysis, Bernstein SocGen Group has increased its price target for Amrize to $65, citing the company’s strong market position, although it noted the stock’s underperformance compared to industry peers. Previously, Bernstein had reiterated an Outperform rating with a $62 price target, describing recent stock price reactions as an overreaction. On the other hand, RBC Capital has lowered its price target for Amrize to $54, citing concerns about the company’s communication with investors. Despite the downgrade, RBC maintained an Outperform rating on the stock. These developments reflect Amrize’s strategic moves in both operational expansion and market positioning.

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