Swiss bank Credit Suisse revised down on Tuesday the earnings-per-share (EPS) estimates and share price targets on Italian cement producers Buzzi Unicem and Italcementi after disappointing third-quarter results.
The bank kept the stock ratings on the two producers at “outperform” and “neutral”, respectively.
Italcementi’s share price target was reduced to €5.00 from €6.00 and the EPS estimates for 2010, 2011 and 2012 were cut by an average 46 per cent to €0.10 from €0.35, to €0.30 from €0.52 and to €0.51 from €0.68, respectively.
Credit Suisse expects stabilisation in prices of cement in Italy in 2011. At the same time Italcementi seems losing market positions in Egypt after a hesitant quarter, the analysts commented.
The bank has revised down to €9.00 from €10 the share price target on Buzzi Unicem, which is showing a continued recovery in Poland, Russia and Germany.
The group’s EPS forecasts for 2010, 2011 and 2012 were lowered by an average 20 per cent to €0.43, E€0.71 and €1.04, respectively.
Italcementi shares had plummeted 4.16 per cent to €5.535 at trading close in Milan on Tuesday, and Buzzi’s stock had sunk 3.13 per cent to €7.42.