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Investing.com - UBS initiated coverage on Wienerberger AG (VIE:WIE) with a Sell rating and a price target of EUR24.00 on Tuesday.
The investment bank identified Wienerberger as the leading European brick manufacturer with the highest exposure to residential new-build construction among European lightside construction companies.
UBS expressed concerns that European mortgage rates are unlikely to decline further in the near term due to limited European Central Bank rate cuts and range-bound bond yields, potentially delaying a housing market recovery.
The firm also highlighted rising energy and wage costs facing Wienerberger in 2026, which could create a negative price/cost spread without sufficient volume growth to offset these pressures.
UBS’s estimates for Wienerberger fall below consensus, with projections 10% below Street EBITDA and 16% below EPS expectations for fiscal year 2026, and 9% below EBITDA and 10% below EPS for fiscal year 2027.
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