Analyst Michael Feniger from Bank of America Securities maintained a Buy rating on CRH plc and keeping the price target at $128.00.
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Michael Feniger has given his Buy rating due to a combination of factors that highlight the potential for significant growth and value in CRH plc’s portfolio. The company’s integrated strategy, which includes aggregates, cement, paving, and products, is gaining credibility and showing promise for future growth. This strategy contrasts with high-quality pure plays, and despite the current valuation discount, there are multiple paths for re-rating over time.
Feniger points to the company’s focus on organic growth and strategic mergers and acquisitions as key drivers for future success. The water and road segments, in particular, are seen as undervalued assets with strong growth potential. The water segment boasts a resilient growth profile and high EBITDA margins, while the road segment benefits from integrated solutions that enhance value. These factors, combined with the company’s reaffirmed financial targets and strategic deployment of resources, underpin Feniger’s confidence in CRH plc’s ability to achieve a higher valuation.
According to TipRanks, Feniger is a 5-star analyst with an average return of 12.8% and a 66.95% success rate. Feniger covers the Industrials sector, focusing on stocks such as Caterpillar, Agco, and Aecom Technology.
In another report released on September 22, Jefferies also maintained a Buy rating on the stock with a $0.00 price target.