Cedar Ekblom, an analyst from Morgan Stanley, maintained the Buy rating on CRH plc (CRH – Research Report). The associated price target remains the same with $106.00.
Cedar Ekblom has given his Buy rating due to a combination of factors that highlight CRH plc’s strong financial performance and strategic positioning. The company’s integrated operating model across the heavyside chain, along with active portfolio management through mergers and acquisitions, has enabled it to extract higher margins and achieve EBITDA growth despite revenue challenges. Additionally, CRH’s strong pricing discipline has contributed to its robust financial results.
Another reason for the Buy rating is the appealing cash return of 3.3% and the company’s ability to improve its revenue, EBITDA, and margins year-over-year. Although there are some weaknesses in the Building Solutions segment, particularly in Outdoor Living, the overall performance in areas like infrastructure and energy projects remains strong. Furthermore, CRH’s valuation metrics, such as trading at 8.7x EV/EBITDA and a 5% free cash flow yield for FY25, compare favorably against peers like MLM and VMC, making it an attractive investment opportunity.
According to TipRanks, Ekblom is ranked #1851 out of 9472 analysts.