Goldman Sachs keeps "buy" on HeidelbergCement

Goldman Sachs on Tuesday reiterated its "buy" recommendation and EUR43 share price target on HeidelbergCement.

Despite the past above-average share price development, the stock remains his favourite in the cement sector, said analyst Will Morgan. The analyst believes that the tailwind from the second half of 2011 will continue also in 2012. Despite an expected slowdown of the growth, HeidelbergCement will be probably able to pass on price increases earlier than competitors. This will be visible in an operating profit growth.

In addition, the declining debt ratio and improved liquidity position are expected to further increase confidence among investors.

Source: SeeNews Germany