Citigroup lowers Italcementi price target, Italy

Citigroup has lowered its price target on Italcementi to EUR3.60 from EUR4.10, after cutting by 15% the pre-tax profit estimates for the Italian cement producer in 2012 and 2013.

The prices and figures in Italy grew despite the weak market conditions but the dipping sales in France lead the bank to expect lower figures in 2012 than in 2011, Citigroup commented.

The higher prices in North America are expected to raise Italcementi's profit on the market both in the first half and full-2012, Citigroup said.

The analysts also expect good performance in Asia and the Middle East, despite the fact that the single countries have different market trends within the various regions. For example, Citigroup has negative expectations for Egypt but positive forecasts for Morocco.

In Asia, India is benefiting from the new factories but the market conditions are unfavourable, whereas Italcementi is consolidating its Chinese business. (Source: SeeNews Italy)