HSBC downgrades Holcim on emerging markets slowdown

HSBC downgrades Holcim on emerging markets slowdown
Published: 27 September 2013

Tagged Under: Holcim Emerging Markets 

HSBC has downgraded Holcim to neutral from overweight and also reduced its target price to CHF72 from CHF77, citing weaknesses in emerging markets.

The bank says an emerging market slowdown means there will over capacity and oversupply of cement will remain, while return on invested capital will be under pressure because of a squeeze on margins.