Wienerberger AG: Risk Reward Update

Research evidence excerpt

Wienerberger AG: Risk Reward Update

UpdateM

RiskRisk RewardReward– Wienerberger- WienerbergerAG (WBSV.VI) AG (WBSV.VI)

Structurally Challenged End Market, Cautious on Resi New-Build Long-Term

PRICE TARGET €23.00 UNDERWEIGHT THESIS

DCF: WACC of ~8%, with risk free rate of 3.2%. Terminal growth of 1%. Medium- to long-term We remain cautious given the company's

revenue growth assumptions reflect trends of limited household formation and small price relatively high exposure to new-build

increases in residential construction end markets. EBITDA margin recovers to +16% midterm activity, which continues to face structural

EV/EBITDA: Applies 5x to 2026e EBITDA, vs the through-the-cycle of 7x. Discount reflects headwinds, alongside ongoing competitive

earnings downside risks and structurally challenged residential market. pricing pressure amid a still-subdued

residential construction market. That said,

€28.70 we recognise the strength of its business

Consensus Price Target Distribution €21.00 €34.70 mix relative to the pre-GFC period, as well

MS PT as the benefits of ongoing capacity

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates rationalisation, cost optimisation, and

potential share-of-wallet gains. We also

recognize upside potential for Wienerberger

RISK REWARD CHART if and when the residential recovery comes.

EUR Consensus Rating Distribution

€34.00€34.00(+50.04%)€34.00(+50.04%)(+50.04%)

50% Overweight

32 25% Equal-weight

25% Underweight

MS Rating

24 €22.66€22.66€22.66 €23.00€23.00(+1.50%)€23.00(+1.50%)(+1.50%) Source: Refinitiv, Morgan Stanley Research

16 €19.00€19.00(-16.15%)€19.00(-16.15%)(-16.15%) Risk Reward Themes

Pricing Power: Negative

8 View descriptions of Risk Rewards Themes here

JUL '25 JAN '26 JUL '26 JUL '27