UBS AG has reiterated its "Neutral" rating for Heidelberg Materials, with a target price of 121 euros, in light of the company's recent acquisition of Giant Cement.
According to analyst Gregor Kuglitsch, the US cement manufacturer is expected to have a minimal impact on Heidelberg's operating result (EBITDA), contributing only around 2 percent. However, Kuglitsch emphasized that this acquisition is a strategic move by Heidelberg to strengthen its market presence in the United States over time.
The commentary was published on November 28, 2024, coinciding with the announcement of the acquisition.