The drop in the cement consumption in Spain will not have any importance for the activities of Portuguese cement producer Cimpor, analysts from Portugal’s investment bank BPI said on June 18, 2008.
The reduction in consumption normally has negative effect on the cement producers, but in the case of Cimpor it is not relevant due to the fact that the Spanish market does not represent a big share in the operations of the Portuguese company, BPI added. Spain currently accounts for some 20 per cent of Cimpor’s annual sales.
The consumption of cement in Spain fell by 12.4 per cent YoY in January to May 2008, according to data of the national sector association Oficemen released on June 17. The drop follows an annual increase registered in April, BPI reminded.
The investment institution recommends "buy" on the stock of Cimpor with a price target of 7.15 euro ($11.07). The target gives to the share a potential for rise of 33.5 per cent compared to current market prices.