JP Morgan downgrades Holcim ahead of 2H results

JP Morgan downgrades Holcim ahead of 2H results
Published: 11 August 2010

At the mid-point of the reporting season analysts at JP Morgan have downgraded its Holcim earnings per share (EPS) estimates for FY2010E, FY2011E and FY2012E 2%, 6% and 6% respectively.

So far each announcement of 2H10 results in the European Building Materials sector has been followed by downgrades to estimates. JP Morgan do not believe that Holcim, despite its well documented strengths, will be immune to the challenging market conditions experienced by its peers JP Morgan have adjusted its estimates by reference to the pricing and volume guidance given earlier this month by Lafarge, Heidelberg and Italcementi in the markets in which Holcim also operates.

Its new estimates are currently 3.6% below Bloomberg consensus in FY2010, 6.4% below for FY2011 and 2.1% below for FY2012