Goldman Sachs downgrades Taiwan Cement target price

The target price for Taiwan’s leading producers, Taiwan Cement Company International (TCC) has been lowered by Goldman Sachs from HK$4.51 to HK$4.27. It has maintained its “buy” rating on the producer.

The house has downgraded its earnings estimates across the Taiwan cement sector by an average of six per cent due to weaker China cement prices as sluggish demand has ensued following the government tightening measures.

Goldman Sachs believes the next few months will be critical for Taiwan producers’ Chinese operations with regards to pricing power, government lending and fixed asset investment initiatives.