Deutsche Bank more positive on European building sector in 2013

Deutsche Bank expects cement stocks to be among the front runners in any cyclical recovery in 2013 and recommends "buying" HeidelbergCement, Buzzi Unicem and Lafarge as its top picks within the sector, according to reports by Bloomberg.

The bank takes a more positive view on the European building materials sector saying it should benefit from a return to 3.5 per cent  global GDP growth while there could well be a growth surprise in the euro area.

"Into 2013 we believe the significant leverage of the cement stocks to any cyclical recovery in the developed markets will keep investors positively disposed towards the sector," Deutsche Bank says in a note.

"Scope for the retention of cost savings to surprise positively as well as an increasing strength of balance sheet should also provide further support," the investment bank says.

The bank expects multiple expansion to occur as investors become more comfortable with a turnaround within the sector.