Lafarge/Holcim Offers Most Upside in Building Materials: Natixis
2015-04-01 06:51:28.771 GMT
By James Cone
(Bloomberg) -- Natixis initiates coverage of European
cement cos. in note today with buy ratings on Lafarge, Holcim,
CRH, neutral on Vicat, Italcementi, reduce on HeidelbergCement.
* Natixis says sector should benefit from improvement in
global economic outlook, lower energy costs, positive
earnings momentum
* U.S. growth factored in, although Europe may see some
improvement in 2H, EM set for mixed trends
* Lafarge/Holcim most appealing; says Holcim shareholders
expected to approve new terms of 0.9 of one Holcim share
for one share of Lafarge at May 8 EGM
* Sees level as “perfectly acceptable” on discounted
valuation of new entity, strong yield outlook,
“exceptional” payout, possible further cash
returns
* Sees level as “perfectly acceptable” on discounted
valuation of new entity, strong yield outlook,
“exceptional” payout, possible further cash
returns</li></ul>
* Proposed acquisition of Lafarge/Holcim assets by CRH
sends “positive message”; sees 22% accretive impact in
2016 on planned synergies
* Further sector consolidation likely; Italcementi a
candidate, merger with HeidelbergCement makes sense
* Further sector consolidation likely; Italcementi a
candidate, merger with HeidelbergCement makes sense</li></ul>
* HSBC today raised HeidelbergCement to hold, lifted 2015-17
Ebitda ests. 4%-6% following FY results
* NOTE March 27: Holcim’s No. 2 investor said to plan vote
against Lafarge merger
* NOTE March 20: Holcim, Lafarge rescue merger from brink of
collapse
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To contact the reporter on this story:
James Cone in London at +44-20-3525-2572 or
jcone@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
2015-04-01 06:51:28.771 GMT
By James Cone
(Bloomberg) -- Natixis initiates coverage of European
cement cos. in note today with buy ratings on Lafarge, Holcim,
CRH, neutral on Vicat, Italcementi, reduce on HeidelbergCement.
* Natixis says sector should benefit from improvement in
global economic outlook, lower energy costs, positive
earnings momentum
* U.S. growth factored in, although Europe may see some
improvement in 2H, EM set for mixed trends
* Lafarge/Holcim most appealing; says Holcim shareholders
expected to approve new terms of 0.9 of one Holcim share
for one share of Lafarge at May 8 EGM
* Sees level as “perfectly acceptable” on discounted
valuation of new entity, strong yield outlook,
“exceptional” payout, possible further cash
returns
* Sees level as “perfectly acceptable” on discounted
valuation of new entity, strong yield outlook,
“exceptional” payout, possible further cash
returns</li></ul>
* Proposed acquisition of Lafarge/Holcim assets by CRH
sends “positive message”; sees 22% accretive impact in
2016 on planned synergies
* Further sector consolidation likely; Italcementi a
candidate, merger with HeidelbergCement makes sense
* Further sector consolidation likely; Italcementi a
candidate, merger with HeidelbergCement makes sense</li></ul>
* HSBC today raised HeidelbergCement to hold, lifted 2015-17
Ebitda ests. 4%-6% following FY results
* NOTE March 27: Holcim’s No. 2 investor said to plan vote
against Lafarge merger
* NOTE March 20: Holcim, Lafarge rescue merger from brink of
collapse
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
James Cone in London at +44-20-3525-2572 or
jcone@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net