Update shared on 29 Oct 2025
Fair value Increased 2.98%Holcim's analyst fair value estimate has been raised from CHF 69.28 to CHF 71.35. Analysts point to improved profit margins and expectations for continued resilience in the building materials sector.
Analyst Commentary
Recent research activity regarding Holcim reveals a divided outlook among analysts, with several expressing optimism around the company's prospects and others voicing caution in certain areas.
Bullish Takeaways- Bullish analysts have repeatedly raised their price targets for Holcim, highlighting confidence in the company’s earnings growth and the underlying strength of the building materials sector.
- The company is recognized as one of the purest plays for exposure to the evolving European cement market. This market is viewed as entering a new regime of profitability and pricing power.
- Expectations for sustained earnings growth through 2030 have been underpinned by effective price and cost management, especially in Europe, even in the face of challenging market conditions.
- Analysts believe Holcim’s recent divestments and strategic actions are positioning the company well to capitalize on resilient demand, with upside potential that may not be fully reflected in consensus estimates.
- Bearish analysts remain cautious on Holcim's sales guidance, with concerns that the company’s outlook might be too optimistic given expectations for weaker construction trends to persist.
- Some research highlights the risk that softer trends in key regions, such as the U.S., could pressure volume growth and lead to more muted operational performance.
- There is a view that, after recent outperformance, Holcim’s shares might be fairly valued, which could limit near-term upside.
What's in the News
- Holcim AG provided financial guidance for the full year 2025, projecting post spin-off recurring EBIT growth of 6% to 10% in local currency (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly, from CHF 69.28 to CHF 71.35.
- Discount Rate has decreased marginally, from 5.17% to 5.14%.
- Revenue Growth projection has improved modestly, shifting from -12.31% to -11.75% year over year.
- Net Profit Margin is expected to be somewhat higher, increasing from 13.13% to 13.56%.
- Future Price-to-Earnings Ratio (P/E) has fallen slightly, moving from 19.27x to 18.83x.
Disclaimer
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