Heidelberg Materials (0MG2 – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Tobias Woerner from Stifel Nicolaus maintained a Hold rating on the stock and has a €140.00 price target.
Tobias Woerner has given his Hold rating due to a combination of factors impacting Heidelberg Materials. The company’s near-term outlook appears challenging, with expected weaknesses in the North American market and a muted recovery in Europe, partly due to adverse weather conditions. These factors have led to a decline in like-for-like EBITDA, further compounded by tough comparisons in the US market.
Despite these challenges, there are positive indicators for the future. The European and German stimulus packages could significantly boost demand, reminiscent of historical post-reunification growth. While the recovery of volumes lost since the Ukraine conflict is largely accounted for in the current share price, potential benefits from reduced carbon footprint, improved fundamentals, and operating leverage provide room for optimism. Consequently, while the stock is expected to face short-term pressures, these could present buying opportunities as conditions evolve.
In another report released on March 27, UBS also maintained a Hold rating on the stock with a €173.00 price target.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0MG2 in relation to earlier this year.