Berenberg announced on Friday that it had raised its recommendation on Holcim from 'sell' to 'hold', with the price target maintained at 54 Swiss francs.

In a research note, the financial intermediary recalls that it had downgraded its recommendation on the share in 2022 due to concerns about the financial consequences of the new strategic roadmap, which focuses heavily on external growth (M&A).

Nevertheless, the analyst acknowledges that the situation has not turned out to be as bad as expected, thanks to the "intelligent" investments and reasoned amounts that the Swiss cement maker has devoted to its acquisitions.

He adds that the favorable evolution of the price/cost spread of the building materials specialist over the past year has, against all expectations, supported the company's profit margins, an element that the professional considers welcome.

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