Morgan Stanley, wary on stimulus impact, cuts CRH

Morgan Stanley, wary on stimulus impact, cuts CRH
Published: 06 August 2009

Morgan Stanley on Wednesday cut its rating on Irish building-materials company CRH Plc to underweight from equal-weight, citing a worsening in the company’s cyclical end markets.

The broker also told clients that while the current consensus expects an earnings recovery in 2010, driven by the effect of cost savings but also helped by an uptick in demand for highway materials as the stimulus spending kicks in in the U.S., it believes the impact of the plan on CRH earnings is overestimated.

Source: www.marketwatch.com