DAVY VIEW

Buzzi Unicem (BZU) has once again confounded expectations, with a strong finish delivering earnings well ahead of estimates. While weather and lower costs were a help, the group has clearly executed well in a difficult year. The FY20 EBITDA out-turn was up 7% year-on-year (yoy) despite the pandemic. The stock continues to disappoint due to concerns around energy costs and uncertain end-markets. At just 5.8x FY21 EV/EBITDA and close to net cash, we think the group should be buying back shares – and lots of them.