Update shared on18 Sep 2025
Fair value Increased 2.08%Analysts increased Holcim’s target price to CHF68.35, citing resilient earnings, long-term growth from decarbonization, and value realization post-North America spin-off, despite concerns over full near-term valuation and earnings risks.
Analyst Commentary
- Bullish analysts cited Holcim's resilient heavy side business performance and stable earnings outlook, even amid soft U.S. construction trends.
- Multiple upgrades were supported by anticipated sustained earnings growth through 2030, driven by effective price/cost management, European volume trends, and optimism post Q2 results.
- Several analysts see Holcim well-positioned to benefit from both a cyclical recovery in European construction and long-term structural growth from decarbonization initiatives.
- The spin-out of Holcim's North American operations into Amrize led to adjustments in valuation and target prices, with positive views on Holcim's post-spin cash conversion, balance sheet strength, and dividend yield relative to peers.
- Bearish analysts lowered targets due to concerns about valuation following the spin-off, potential downside to earnings estimates not yet reflected (e.g., Nigeria divestment), and a reassessment of fair value as shares appear fully valued in the near term.
What's in the News
- Holcim AG has issued financial guidance for full year 2025, expecting post spin-off recurring EBIT growth of 6% to 10% in local currency (Key Developments).
- No relevant or recent news directly affecting Holcim is reported in leading periodicals at this time (Periodicals).
- The latest guidance suggests continued operational strength following Holcim’s corporate restructuring initiatives (Key Developments).
- Market may interpret the new guidance as a positive signal on Holcim’s strategic execution and profitability outlook (Key Developments).
- No external geopolitical or regulatory developments directly involving Holcim were noted in current news sources (Periodicals).
Valuation Changes
Summary of Valuation Changes for Holcim
- The Consensus Analyst Price Target has risen slightly from CHF66.96 to CHF68.35.
- The Future P/E for Holcim has risen from 17.44x to 18.68x.
- The Discount Rate for Holcim remained effectively unchanged, moving only marginally from 4.92% to 5.02%.
Disclaimer
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