Cimpor higher as analysts hike estimates

Shares in Cimpor - Cimentos de Portugal SGPS rose, more than reversing yesterday’s losses, as analysts said they will raise their full-year estimates after the cement maker’s first quarter net profit fell less than expected, dealers said. Cimpor’s sales, EBITDA and net profit were better than expected, and the EBITDA margin in line at 33 per cent, Sonia Baldera of Caixa Banco de Investimento said in a reaction.

Caixa BI had expected Cimpor’s results to look weak compared to the year earlier quarter, ’due particularly to the effect of the rise in oil related input costs and the decrease of cement prices in Brazil’, the analyst said.

BCP Investimento said Cimpor has one of the best EBTIDA margins amongst comparable companies and the introduction of IFRS had a positive impact on EBITDA and EBIT. It kept a ’Neutral’ recommendation and Euro 4.55 target.