Oddo BHF has reaffirmed its "outperform" rating and price target of 110 euros on Saint-Gobain. The analyst believes that, at approximately 7 times EV/EBITDA for 2026, shares of the French building materials group still offer significant catch-up potential.
"Since the start of the pre-close calls, the stock has stalled, with investors remaining focused on the U.S. housing market and its slowdown. Nevertheless, Saint-Gobain has chosen to defend its margin, and the market will accept this," the analyst notes.
The research firm states it is "generally convinced that the profound changes of recent years have not yet been fully reflected in the company's valuation (sustainable ESG profile, strong pricing power, improved group profile through targeted acquisitions and disposals)."
UBS, for its part, has downgraded its recommendation on Saint-Gobain shares to Sell (from Neutral) and revised its price target to €78 (from €92). The analyst believes that strong headwinds are weighing on results.
"There is up to 10% downside potential due to mounting challenges in the United States and a European recovery that remains too slow," UBS states in its research note.
It should be recalled that the group expects a gradual recovery country by country in Europe, sustained activity in Latin America, and a continued moderate decline in the new construction market in North America amid persistently high interest rates, as well as growth in Asia-Pacific primarily driven by India, Southeast Asia, and the integration of CSR in Australia.
Saint-Gobain is targeting an operating margin above 11.0% for the 2025 fiscal year.
Compagnie de Saint-Gobain is one of the world leaders in the production and distribution of construction materials for the construction, mobility, healthcare and industrial sectors. The activity is organized around 4 areas:
- manufacturing of high-performance materials: ceramic products (No. 1 worldwide in thermal and mechanical applications for ceramics) and plastics (No. 1 worldwide), abrasive products (No. 1 worldwide) and reinforcing materials (No. 1 worldwide in wire of glass);
- distribution of materials: primarily under the names Point.P in France, Dahl in Scandinavia and Telhanorte in Brazil;
- manufacturing of construction products: exterior products (PVC and façade products, asphalted shingles, etc.), insulation (glass wools, insulating foams, metal ceilings, etc.) and ductwork, industrial mortars, and gypsum materials;
- manufacturing of glass: plate glass, automobile windows, specialty glass (fire and nuclear protection glasses, etc.). The group also transforms and distributes building glass.
Export accounts for 76.4% of net sales.
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