Compagnie de Saint-Gobain SA (CODYY – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Harry Goad from Berenberg Bank upgraded the rating on the stock to a Buy and gave it a $20.00 price target.
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Harry Goad has given his Buy rating due to a combination of factors that highlight the potential for Compagnie de Saint-Gobain SA’s stock. The recent decline in the share price by approximately 25% presents an attractive entry point, especially considering the company’s ongoing impressive restructuring efforts. Despite macroeconomic concerns, such as US tariffs and a potential slowdown in European GDP, the direct impact on Saint-Gobain is expected to be limited due to its domestic manufacturing in the US and the already experienced decline in European construction markets.
Additionally, the company’s strategic portfolio reshaping, which has rotated about 40% of revenue through asset sales and acquisitions, has positively impacted its EBITDA margin. This restructuring, alongside a disciplined approach to price and margin management, has improved the EBIT margin significantly. Furthermore, the upcoming capital markets day is anticipated to be a catalyst for the stock, as the company is expected to unveil further plans for portfolio optimization and margin targets, supporting the view that the company’s repositioning is only halfway through its decade-long strategy.
CODYY’s price has also changed slightly for the past six months – from $18.069 to $16.902, which is a -6.46% drop .