Davy Research

HeidelbergCement AG

Bullish outlook and higher synergies offset weaker FY 2016 result
Building Materials
HeidelbergCement AG

DAVY VIEW

With the synergy target lifted again and bullish 2017 guidance, the market will likely look through weaker-than-expected results. Higher integration charges meant that the net income result was c.10% behind our estimate. Synergies, however, are better with a new target of €470m revealed versus the whisper number of c.€450m. The group has put a wide range on profit guidance (mid-single-digit to double-digit growth). While vague that guidance should reassure given the CEO’s comments on the February conference call. At that point, it appeared that the group was guiding to mid-single-digit growth. The update is unlikely to change headline OIBD forecasts though numbers will have to move lower for the 2016 base effect.

Download full report with analyst certification and important disclosures
Download
Download full report with analyst certification and important disclosures
Download
  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • HeidelbergCement AG

    Closing Price: 9043c

  • RATING 05/02/14

  • PREVIOUS RATING 03/09/13

    Outperform

Analyst(S)

COMPANY DATA

JUMP TO