Goldman Sachs Starts Amrize Ltd (AMRZ) at Neutral

Goldman Sachs analyst Jerry Revich initiates coverage on Amrize Ltd (OTCBB: AMRZ) with a Neutral rating and a price target of $57.00.

The analyst comments: "We are initiating coverage of Amrize - a leading North American cement and roofing company - with a Neutral rating and 15% upside to our 12-month price target of $57. We estimate Amrize generates industry-leading ~40% margins in its North America cement business where the company holds a #1 market position nationwide with 23% revenue share and strong 50+% share on a local market (150-mile) basis based on our in-house geospatial analysis included in this report. We see significant runway for continued value-added capital deployment in Building Envelopes for a business that (i) has built up its roofing footprint with a series of acquisitions at ~8x EV/EBITDA post synergies and (ii) delevered through a series of 20 divestitures in emerging markets raising $10 bn. However, our positive view of the Amrize franchise is balanced by our outlook for slowing construction growth and as a result challenging cement industry unit profitability in the medium term. We prefer Construction Machinery over Materials at this point in the cycle, driving our Neutral rating on Amrize."

For an analyst ratings summary and ratings history on Amrize Ltd click here. For more ratings news on Amrize Ltd click here.

Shares of Amrize Ltd closed at $0.95 yesterday.

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