Jefferies cuts HeidelbergCement to Hold

Jefferies cuts HeidelbergCement to Hold
Published: 03 February 2011

Jefferies International downgrades HeidelbergCement to hold from buy, but raises the target price to EUR48 from EUR46. Jefferies notes HeidelbergCement is under-represented in emerging markets vs peers, but the company will benefit from recovery in the UK and US, which account for 40% of Jefferies’ EUR2.86 billion mid-cycle profitability estimate. It reduces Ebitda estimates by 1.2% to EUR2.2 billion for 2010 and by 4.4% to EUR2.4 billion for 2011.