Strong American and European construction activity has prompted JP Morgan Cazenove to hike its rating on cement maker CRH. The investment bank upgraded the London-listed group's rating from 'neutral' to 'overweight', as it believes the company's valuation is 'relatively attractive'.

A respectable performance from the FY15 results together with a better-than-expected outlook commentary across the sector has encouraged analysts to see a bright future for CRH, which has been rapidly expanding its portfolio. So far this year, the building materials sector has slightly outperformed the broader market, reported the Daily Telegraph.

Elodie Rall, of JP Morgan Cazenove, said: "We see limited risks to estimates, given solid US and European construction data."

In Europe, construction activity has shown improving trends in recent months, which underpins the bank's forecasts for 'slight growth' in the region.

However, JP Morgan remained cautious on the outlook for emerging markets cement after prices fell in the fourth quarter.