Natixis reiterates Lafarge “buy” recommendation

Natixis has confirmed its “buy” recommendation and EUR40 share price target on Lafarge. The broker said it is confident of the company’s ability to achieve its 2012 goals and reduce debt through increased cash flow and asset sales, SeeNews France reported.

Earlier this year Lafarge said it plans to cut 460 jobs worldwide as part of its reorganisation strategy. Under the project, it will replace its current product-line based organisation with country-based structure.

During the release of its 2011 results two weeks ago, it said it had successfully achieved net debt reduction target of EUR2bn and additional debt reduction will come in 2012 as the group maximises its operational cash flows. It has pledged to drive a €500m cost reduction program, further reduce capex to €800m, make more than €1bn of divestments and propose a reduction of the dividend to 50 cents per share.