" name="description"/> Capital Markets Day along expected lines – greater cash focus but no magic bullet

Davy Research

HeidelbergCement AG

Capital Markets Day along expected lines – greater cash focus but no magic bullet
Building Materials
HeidelbergCement AG

DAVY VIEW

HeidelbergCement's Capital Markets Day (CMD) saw the launch of the group's "Vision 2020" strategy. The plan leans heavily on efficiency, vertical integration and improved cash generation to deliver for shareholders. Unlike previous plans, management has been deliberately cautious in an effort to under-promise and over-deliver. The update was largely along expected lines, targeting moderate EBITDA growth with a capex-light model and a renewed focus on cash. Deleveraging comes first, so a buyback remains a distant prospect. We remain ‘Outperform’, albeit the stock may now lack catalysts in the short term.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • HeidelbergCement AG

    Closing Price: 7864c

  • RATING 16/06/17

  • PREVIOUS RATING 05/02/14

    Neutral

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