Jefferies International give Lafarge Hold rating

Jefferies International give Lafarge Hold rating
Published: 27 April 2010

Investment banking advisor Jefferies International Ltd is initiating coverage of Lafarge with a Hold rating and a EUR58 12-month price target. The EUR58 price target is one per cent above the current share price.
 
Lafarge has a substantial presence in the Middle East and Africa. This region accounted for 42 per cent of the company’s operating profit in 2009 and for 35 per cent of Jefferies’ estimate of its mid-cycle profitability. It expects Lafarge’s significant presence in these higher growth markets to boost the longer-term rate of growth in its earnings.
 
Lafarge is due to report its 1Q10 results on Wednedsay 5 Mat. Jefferies International expects it to report around a 21 per cent decline in its operating profit before exceptional items on around a seven per cent decline in sales.