BUY OR SELL-Analysts split on Heidelberg's road to recovery

* HeidelbergCement releases solid Q3 results, trims debts

* Probable inclusion in DAX could support shares

* Market outlook may still be too optimistic

By Tyler Sitte

FRANKFURT, Nov 4 (Reuters) - Analysts are divided about whether German building materials maker HeidelbergCement (HEIG.DE) is on the road to recovery following its results announcement on Wednesday. [ID:nL3364461]

BUY

"HeidelbergCement's third quarter was a positive surprise despite some negative aspects," said Commerzbank analyst Norbert Kretlow, who reiterated his brokerage's "buy" rating.

"The driver was cost cutting and profits from emission rights trading and we regard the figures as positive despite the fact that some earnings drivers are not sustainable."

Credit Suisse analysts Arnaud Lehman and Harry Goad pointed to indications of further earnings catalysts in coming years.

"Volumes recovery in Europe and North America, and the group's restructuring efforts and resilient pricing, should drive the earnings recovery in the next two years," they wrote in a note to clients, initiating coverage at "outperform".

They also point to the likely inclusion of the stock in the German DAX-30 bluechip index .GDAXI and upgrades on the company's credit ratings as further supporting factors.

Deutsche Bank analysts said HeidelbergCement's third-quarter fixed cost reductions were ahead of expectations and they see the recent share price drop as a clear opportunity to buy.

"HeidelbergCement is trading at the lowest multiples in the industry and it provides significant operational gearing when volumes are getting back," the brokerage said in a note.