Citi cuts Holcim price target after weak 1H

Citi cuts Holcim price target after weak 1H
Published: 23 August 2011

Citi cuts Holcim’s price target to CHF48 from CHF60 (EUR42 from EUR52.6), citing market turbulence and lower estimates for the cement maker. Holcim’s first half results came in below expectations and were hit hard by the strength of the CHF and the lack of cost recovery through higher prices, says analyst Clyde Lewis. "We continue to believe that the cement stocks remain relatively risky within the sector at present due to the price/cost balance and uncertainty over infrastructure spending in mature markets in particular," he adds. The house has a Hold rating.