Numis believes now is the time to look at shares in Irish building material specialist CRH (LON:CRH), Citywire has reported. The comments came as the broker reiterated its ‘hold’ stance on the stock.
CRH’s share price closed little changed in the previous session, shedding 0.04 percent to 2,403.00p, underperforming the broader UK market, with the benchmark FTSE 100 index adding 11.11 points to end the session 0.15 percent higher at 7,194.75. The group’s shares have lost more than 14 percent of their value over the past year, as compared with about a two-percent dip in the Footsie.
Numis sees CRH as ‘hold’
Numis reiterated its ‘hold’ stance on CRH yesterday, with a price target of 2,870p on the shares.
“With CRH’s share price down 15% since the start of 2017, we believe that it is an opportune time to re-examine the group’s investment case,” the broker’s analyst Christen Hjorth commented, as quoted by Citywire, adding that construction activity in the FTSE 100 group’s key markets and the company’s returns remained below long-run averages.
“Furthermore, we see a number of see a number of potential short-term catalysts that could lead to share price upside over the next 12 months,” he pointed out.
Other analysts on group
Jefferies reiterated its ‘buy’ rating on the shares last month, with a price target of 2,860p, while Barclays continues to see CRH as a ‘top pick,’ without specifying a valuation on the stock. According to MarketBeat, the building materials specialist currently has a consensus ‘buy’ rating and an average price target of 3,025.29p.
CRH updated investors on its full-year performance last month, posting a rise in sales and earnings, while also signalling that it is eyeing more deals going forward, having sealed the acquisition of Ash Grove Cement last year.