STOCKS NEWS EUROPE-HeidelbergCement up on positive notes
Shares in HeidelbergCement (HEIG.DE) gain 1.9 percent, after Credit Suisse initiates coverage of the construction materials specialist with an "outperform" rating and Morgan Stanley starts the shares with an "overweight" rating. In a note to clients, Morgan Stanley says that HeidelbergCement offers the best risk/reward mix in the construction sector, helped by the fact its debt maturities are covered until 2012, adding it is best positioned for earnings growth and it has a resilient product mix.
Morgan Stanley has a 61.3 euro target price on the stock.
Credit Suisse sees up to a 56 percent potential upside on Heidelberg's current 41.42 euro share price and points to its exposure to large mature markets as a positive factor.
"HeidelbergCement has a larger mature markets exposure than its large cement peers Lafarge (LAFP.PA) and Holcim (HOLN.VX), implying, in our view, a potentially sharper recovery in volumes in 2010 and 2011 from a lower 2009 base," analyst Arnaud Lehmann and Harry Goad write in a note to clients.
Credit Suisse has a 66 euro price target on the stock.
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