5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - UBS initiated coverage on CRH plc (NYSE:CRH) with a Buy rating and a $138.00 price target on Tuesday. The construction materials giant, currently valued at $78.4 billion, has shown remarkable momentum with a 37.7% return over the past six months and trades near its 52-week high of $121.88.
The investment bank designated CRH as its top sector pick, citing three key reasons for its bullish outlook on the building materials company.
UBS forecasts CRH will deliver 12% like-for-like EBITDA growth in 2026 and 8% in 2027, making it the strongest growing heavyside stock in the firm’s coverage universe. This growth is expected to be driven by CRH’s above-average exposure to US infrastructure projects and aggregates.
The bank believes CRH’s financial track record supports its claims of superior earnings growth through its unique integrated business model, which UBS expects to continue delivering results.
UBS also noted that CRH currently trades in line with a like-for-like sum-of-the-parts valuation based on peer multiples, suggesting the market assigns no premium for the company’s integrated model, which the bank considers "fundamentally wrong."
In other recent news, CRH plc has completed its $2.1 billion acquisition of Eco Material Technologies, enhancing its presence in the North American market for Supplementary Cementitious Materials. This strategic move follows a series of analyst updates, reflecting positive sentiment towards the company. Morgan Stanley has reiterated its Overweight rating on CRH, maintaining a price target of $134. Meanwhile, RBC Capital raised its price target significantly from $112 to $152, highlighting a positive growth outlook after CRH’s Capital Markets Day.
Additionally, Bernstein SocGen Group has maintained its Outperform rating and increased its price target to $130, citing a strong outlook. The firm noted that CRH’s recent results day was marked by a strong performance, as the company met consensus EBIT/DA expectations and raised guidance for adjusted EBITDA and EPS. Furthermore, Bernstein views the company’s Capital Markets Day as a potential catalyst for the stock, with a significant portion of investors anticipating positive outcomes from the event. These developments underscore a period of strategic growth and analyst confidence in CRH’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.