Berenberg Lowers Holcim Price Target Post-Amrize Spinoff, Maintains Hold Rating

Berenberg has reduced its price target for Holcim Ltd following the company's spinoff of Amrize. Despite this, the investment firm maintains its Hold rating for the construction materials producer. Holcim's net sales are primarily driven by cement and clinkers (44.2%), ready-mix concrete (21%), and granulates (12.4%). The company generates sales from various geographic regions, with the US accounting for 29.3% of its revenue.

Swiss construction materials giant Holcim Ltd has seen a mixed reaction from analysts following its recent North American spinoff. The company, which primarily generates revenue from cement and clinkers (44.2%), ready-mix concrete (21%), and granulates (12.4%), has seen a reduction in its price target by Berenberg while maintaining a Hold rating [3].

Berenberg analyst Harry Goad has decreased the target price for Holcim Ltd from CHF 92 to CHF 55, reflecting the impact of the spinoff. The analyst, however, retains a Neutral stance on the stock, suggesting that the market's reaction to the spinoff has not significantly altered his view on Holcim's long-term prospects [3].

Jefferies has upgraded Holcim shares from 'hold' to 'buy' with a target price reduced from 97.7 to 65 Swiss francs. The brokerage firm highlights Holcim's exposure to a cyclical recovery in European construction and structural growth due to decarbonization, positioning it well for these major themes [1].

JPMorgan has also initiated coverage of Holcim, giving it an Overweight rating and setting a price target of CHF 65. The analyst Elodie Rall notes that Holcim's shares are trading at a 52% discount compared to its Swiss counterparts, offering a more attractive dividend yield [2].

Despite the mixed signals, the market has reacted positively to the spinoff. Holcim Ltd created approximately $5.4 billion in market value in the first days of trading after spinning off its North American operations [4]. The combined market capitalization of both Holcim and Amrize Ltd was about $70.42 billion at about 3:30 p.m. CET in Swiss trading on Tuesday, compared to Holcim's roughly $65.02 billion of market value at the close of trading on Friday [4].

References:
[1] https://www.marketscreener.com/quote/stock/HOLCIM-LTD-2956274/news/Holcim-Jefferies-upgrades-stock-50372538/
[2] https://www.gurufocus.com/news/2941276/holcim-hcmly-receives-overweight-rating-and-positive-valuation-outlook-hcmly-stock-news
[3] https://www.marketscreener.com/quote/stock/HOLCIM-LTD-2956274/news/HOLCIM-Berenberg-remains-Neutral-50370641/
[4] https://news.bloomberglaw.com/capital-markets/holcim-unlocks-5-4-billion-in-value-with-north-american-spinoff