Heidelberg Materials Now Carries Significance
Heidelberg Materials, a DAX-listed company (WKN: 604700), is still considered optimistic by its shareholders, despite a recent dip in the share price. The stock has fallen below the 200 euro mark in recent days, following a brief attempt to surpass its previous record high of 212.20 euros.
Despite this, analysts remain bullish on Heidelberg Materials. Glynis Johnson, an expert from analysis firm Jefferies, has set a target price for the company at 236.50 euros, while Anthony Codling of RBC has maintained his "Outperform" rating and set a calculated target price of 220 euros.
Johnson's positive assessment for Heidelberg Materials is based on improvements in the construction materials business that could be seen in countries such as Germany or Italy. On the other hand, Codling sees five major demand waves in Europe: infrastructure development, defense spending, energy transition, housing shortage, as well as digitization and data centers.
The prospects for Heidelberg Materials are good, with the company's business running smoothly. The analyst consensus for Heidelberg Materials' result in the current year is above the average forecast range of the DAX company.
However, Codling believes that the Heidelberg Materials share is only fairly valued at 220 euros, and has once again confirmed his investment recommendation for the company with "Outperform". Heidelberg Materials' valuation is still moderate compared to the industry.
Investors who have purchased Heidelberg Materials' shares are advised to continue holding them, as the stop-loss can be maintained at 145.00 euros for now. If the share price falls below its interim low of 191 euros, it could potentially go down to the area around 175 euros.
On the other hand, if the share price stabilizes, there could be an attack on the interim high of 209 euros and then on the record of 212.20 euros. The construction materials business in the UK and France is likely to continue to develop rather weakly, but this does not seem to deter the positive outlook for Heidelberg Materials.
In conclusion, while Heidelberg Materials' share price has experienced some volatility in recent days, analysts remain optimistic about the company's prospects. With improvements in the construction materials business in key European markets and a positive outlook for the five major demand waves identified by Codling, investors may find Heidelberg Materials to be a worthwhile investment.
