Analyst Targets Raised for CRH Amid Upbeat Guidance and Improved Revenue Growth Outlook
Narrative Update on CRH: Analyst Price Target Revision
Analysts have raised their fair value estimate for CRH from $129.86 to $134.28. They cite increased revenue growth expectations as the main supporting factor for this upward revision.
What's in the News
- CRH plc and Heidelberg Materials AG are among the primary suitors for NCC AB’s industry business, which could fetch as much as $1 billion as it moves into the next round of bidding. Other interested parties include Bouygues's Colas unit and several private equity firms. (Key Developments)
- NCC’s industry unit, the subject of these acquisition talks, generates about 20% of NCC's total sales. The outcome remains uncertain, and a strategic review is expected to conclude before year-end. (Key Developments)
- CRH plc has raised its earnings guidance for the fiscal year 2025, citing a positive business outlook and strength in demand across key end-use markets. (Key Developments)
- For 2025, CRH now expects net income to be between $3.8 billion and $3.9 billion, with diluted EPS in the range of $5.49 to $5.72. This reflects improved confidence compared to prior guidance. (Key Developments)
Valuation Changes
- The Fair Value Estimate has risen slightly from $129.86 to $134.28.
- The Discount Rate increased marginally from 8.67% to 8.68%.
- Revenue Growth expectations improved, moving from 6.00% to 7.49% per year.
- The Net Profit Margin declined marginally from 11.32% to 11.18%.
- The Future P/E Ratio edged up from 22.28x to 22.37x.
Disclaimer
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