FinanceHeidelberg Materials: Not Yet Attractive, But May Become So Later
Despite recent valuation declines, Heidelberg Materials remains a 'HOLD' with a reiterated €135/share price target. Growth is driven by pricing, not volume, making HDLMY's earnings trend fragile amid weak European demand and macro uncertainty. Buybacks are currently value-destructive, as earnings yield does not exceed WACC, and fundamentals do not justify a premium multiple. Sector headwinds, cost pressures, and slow recovery limit upside; risk/reward is not attractive enough to upgrade from 'HOLD.'