Heidelberg Materials stock has been slowly climbing in recent trading weeks. According to analysts who regularly follow the shares of the world’s largest building materials manufacturer, there is still plenty of room for the stock to go up, especially in the eyes of Jefferies analysts.
Jefferies analyst Glynis Johnson has slightly lowered the price target for Heidelberg Materials shares from 141.00 to 140.70 euros. However, this still represents a more than 40% increase over the previous closing price, which is why she maintains her buy recommendation. Johnson mentioned that her forecast for the company’s operating profit is slightly above the average market expectations. She does not expect the quarterly results to be a driving force for the stock, but she emphasized that the dividend stocks are still undervalued.
On the other hand, US bank JPMorgan is more cautious. Their investment rating is “Overweight,” and the fair value was confirmed at 108 euros. Analyst Elodie Rall stated in a study published on Wednesday that the operating profit (EBITDA) in Q3 is unlikely to have increased significantly and could potentially disappoint market participants. However, the company is expected to meet its targets for 2024.
Meanwhile, the Canadian bank RBC has reduced the price target for Heidelberg Materials from 131 to 128 euros. Despite this reduction, the investment rating remains “Outperform” due to the stock price still being significantly below that level. Analyst Anthony Codling lowered his profit forecasts for all globally operating building material companies, citing weak market data from the USA and Europe, as well as negative weather and currency influences.
The outlook for Heidelberg Materials is positive, with a low P/E ratio of 8 and a dividend yield of nearly four percent. Investors are encouraged to continue holding onto their investments in the company, with a stop loss at 70.00 euros.
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Overall, while analysts have varying opinions on Heidelberg Materials stock, the company’s solid fundamentals and positive outlook make it an attractive investment opportunity for investors looking for long-term growth potential in the building materials sector.