Heidelberg Materials has been given a "Neutral" rating by UBS, with a target price of 121 euros, after the company announced its acquisition of Giant Cement.
According to analyst Gregor Kuglitsch, the US cement manufacturer is expected to contribute around 2 percent to Heidelberg's operating result.
Despite the limited impact on financials, Kuglitsch sees the acquisition of medium-sized suppliers in the US as a strategic move to strengthen Heidelberg's market presence in the long run.
The commentary, published on November 28, 2024, reflects UBS's cautious optimism about Heidelberg's growth strategy in the competitive US market.