A lot of bang for the buzz

Research evidence excerpt

A lot of bang for the buzz

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Buzzi

Reiterate Rating: BUY | PO: 55.00 EUR | Price: 44.23 EUR

Discount too wide for ROCE at c.10% 15 July 2026

Buzzi is trading at a material discount (40%) to large cement peers (c.6x 2027E Equity

EV/EBITDA vs peers c.9x, and c.9x P/E vs peers at c.15x), which looks hard to justify

given its similar, if not better, one year-forward ROCE of 9.8%. It also has a stronger

Key Changesbalance sheet (the only net cash European cement name we cover). We reiterate Buy

with a new PO of €55/US$32 (from €58/$34; -5% lower on a higher depreciation (EUR) Previous Current

estimate), implying >20% upside. Price Obj. 58.00 55.00

Major markets: soft, but not as bad as priced in 2026E2027E RevRev (m)(m) 4,555.94,741.5 4,527.64,744.2

Macro trends in Buzzi’s key markets have softened, but not as much as the share price 2028E Rev (m) 4,943.7 4,991.3

implies. In the US, we acknowledge high interest rates are putting near-term pressure on 2026E EPS 4.98 4.53

construction. However, Buzzi’s US margin remains structurally high (>35%). Demand in 2027E EPS 5.31 4.87

Texas (c.20% of US sales we estimate) is supported by population growth, infrastructure 2028E EPS 5.65 5.28

and data centre activity. Transition from IIJA to the new regime is making progress. 2026E DPS 0.75 0.73

Germany is still weak but expectations are already low, while the infrastructure package

provides medium-term optionality. Latest print on Germany cement PPI, and Allison Sun >>

construction & civil engineering PMI was not that bad. Research Analyst

MLI (UK)

+44 20 7996 1052Capex: funded by cash, not hope allison.sun@bofa.com

We expect the group to remain net cash positive post annual capex (€500m-€550m in Arnaud Lehmann >>

next three years).