Goldman Sachs cuts Buzzi Unicem's rating, Italy

Goldman Sachs cuts Buzzi Unicem's rating, Italy
Published: 01 February 2012

Goldman Sachs downgraded its rating on Buzz Unicem to "sell" from "neutral" due to signs of slowdown in the construction sector in Europe and the high energy prices, SeeNews Italy reports.

The US bank, however, revised up its price target on Buzzi Unicem to EUR6.70 from EUR6.30 in a report on the cement sector.

The construction sector outperformed the market by some six per cent in the past three months with the companies exposed to the USA benefiting from some improvement in the private construction segment.

The good prospects in the segment, however, are not enough for Goldman Sachs to change its outlook on the private sector construction which is for a flat 2012 and a recovery in 2013. The forecast for the European construction sector is for contraction and the energy costs will continue to weigh on the companies in 2013.