In a report released on July 1, Arnaud Lehmann from Bank of America Securities reiterated a Buy rating on CRH plc, with a price target of p8,200.00.
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Arnaud Lehmann has given his Buy rating due to a combination of factors that highlight CRH plc’s strong potential for growth and value. The stock has been included in Bank of America’s Top 10 EMEA Ideas for the third quarter, indicating its promising outlook. One of the reasons for this inclusion is the stock’s underperformance relative to both European and US peers, suggesting room for upward movement. Additionally, CRH’s valuation is attractive, being broadly in line with European peers but at a significant discount compared to US peers, which could appeal to investors.
Lehmann also points to potential positive developments such as the inclusion of CRH in the S&P 500 index, which could drive substantial trading activity. The company’s earnings momentum is supported by positive pricing and currency tailwinds, particularly in its European operations. Despite some conservative estimates for US volumes, CRH’s margins in the Americas are expected to benefit from favorable price and cost trends. Overall, the combination of quality growth, strong execution, and capital allocation flexibility underpins the Buy rating, with a revised price objective reflecting these factors.
CRH’s price has also changed slightly for the past six months – from p7414.000 to p6856.000, which is a -7.53% drop .