Michael Feniger, an analyst from Bank of America Securities, maintained the Buy rating on CRH plc. The associated price target was raised to $132.00.
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Michael Feniger has given his Buy rating due to a combination of factors influencing CRH plc’s market positioning and growth potential. One of the primary reasons is CRH’s inclusion in the S&P 500 Index, which is seen as a pivotal moment in the company’s ongoing transformation. This inclusion is expected to help close the valuation gap between CRH and its U.S. construction material peers, a factor that has been on investors’ radar despite the difficulty in predicting its exact timing.
Feniger also highlights multiple avenues for CRH to achieve a re-rating over time. These include the company’s ability to meet targets, enhance disclosures, and demonstrate the effectiveness of its integrated model. Additionally, CRH’s portfolio flexibility, characterized by strategic mergers, acquisitions, and divestitures, supports a higher quality mix. The recent uptick in organic growth, particularly in non-residential construction, further underscores the potential for CRH to improve its market valuation and justify the Buy rating.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a $139.00 price target.