JP Morgan Boosts CRH Price Target to $130, Maintains Overweight Rating

JP Morgan has assumed coverage on CRH with an "Overweight" rating and raised the price target from $117 to $130, a 11.11% increase. The historical analyst ratings for CRH have shown varied insights, with RBC Capital maintaining an "Outperform" rating and DA Davidson downgrading CRH from "Buy" to "Neutral." CRH is a global manufacturer of building products used in construction projects, with a vertically integrated business model and a geographic footprint mostly across developed markets.

JP Morgan has assumed coverage on CRH plc (NYSE:CRH) with an "Overweight" rating and raised the price target to $130.00, an 11.11% increase from the previous target of $117.00 [1]. This move reflects the investment bank's bullish outlook on CRH's growth prospects and market position. The stock, currently trading near its 52-week high of $113.95, has delivered impressive returns with a 22.72% gain year-to-date.

CRH, a global manufacturer of building products used in construction projects, maintains a vertically integrated business model and a geographic footprint mostly across developed markets. The company's operations are spread across North America, Europe, and Australia, providing geographical and end-market diversification across essential materials, road solutions, and outdoor living products [1].

JPMorgan projects EBITDA growth of 10% for fiscal year 2025 and 6% for fiscal year 2026, slightly above the consensus estimates of 9% and 6%, respectively. The investment bank highlights CRH's proven track record of acquisitions, organic growth prospects, and strong cash flow generation as factors making it an attractive investment opportunity [1].

CRH trades at 11.1x forward EV/EBITDA, a discount compared to peers with similar EBITDA growth and free cash flow conversion profiles. This suggests potential for stock re-rating driven by possible S&P 500 inclusion, accretive M&A transactions, and ongoing share repurchases [1].

In other recent news, CRH has reported significant developments that investors may find noteworthy. The company achieved earnings per share growth of 3% and EBITDA growth of 9%, despite challenging conditions in the materials sector. Additionally, CRH has signed an agreement to acquire Eco Material Technologies for $2.1 billion, with the transaction expected to close in 2025, pending regulatory approval [1]. CRH has also completed a $0.3 billion share buyback and announced a new program to repurchase up to another $0.3 billion worth of shares, effective until November 2025 [1].

The mixed sentiment from analysts regarding CRH's future performance is evident in recent updates. DA Davidson downgraded CRH from "Buy" to "Neutral," citing a slower growth outlook and setting a price target of $105. Conversely, Morgan Stanley raised its price target for CRH to $110, maintaining an "Overweight" rating, driven by anticipated EBITDA growth and favorable currency conditions [1].

References:
[1] https://www.investing.com/news/analyst-ratings/jpmorgan-raises-crh-stock-price-target-to-130-assumes-coverage-93CH-4210297
[2] https://www.quiverquant.com/news/New+Analyst+Forecast%3A+%24CRH+Given+%24130.0+Price+Target