Credit Suisse keeps "outperform" rating on Lafarge

Credit Suisse keeps "outperform" rating on Lafarge
Published: 09 November 2010

Credit Suisse has reiterated its "outperform" rating on Lafarge, as well as the share price target of EUR48, after the company published last week its third-quarter results.

According to the broker, the group reported a weak third-quarter performance, accompanied by pressure in Asia where Lafarge was hit by bad weather and an increase in costs. The company experienced similar pressure in Spain and Greece.

However, Credit Suisse reckons that Lafarge has good chances to improve its financial performance over the next quarters. The company may benefit from a more favourable comparison basis in mature markets, Africa, Asia and Latin America.

Moreover, the Swiss bank believes the group’s debt is under control.