Buzzi (AO) | Buy | Reassuring messages on price-to-cost in Europe

研报英文原文证据摘录

Buzzi (AO) | Buy | Reassuring messages on price-to-cost in Europe

Buzzi Buy | Target Price: EUR54.00

Company description Management

Buzzi is a multi-regional group focused on cement, ready-mix and aggregates. Veronica Buzzi, Chairman

The group has a cement capacity of c 44m tonnes a year, with key positions in Pietro Buzzi, CEO

Italy, Central/Eastern Europe, including Germany, Luxembourg, Netherlands, Dirk Beese, COO

Russia, Poland, the Czech Republic, and in North America (US, Mexico). In 2018, Key shareholders

Buzzi entered Brazil via a mid-sized acquisition and in 2025 it entered the Free float 41.10%

Emirates via a small acquisition. The company is controlled by the Buzzi family. Fimedi, Presa (Buzzi family) 52.90%

Treasury shares 6.00%

Investment case Valuation methodology

Buzzi has an experienced management team and a We value the stock at EUR54, which is based on our DCF model

longstanding cost control and capital allocation track record. (WACC: 10%, TG: 1.5%, terminal EBIT margin: 15%) and which

A favourable pricing versus cost spread led to a margin rise over incorporates 8.3% treasury shares cancellation to be finalised in

2022-24. In 2025 EBITDA posted some erosion. Benefits from the 2026.

fiscal stimulus in Germany (12% of the group's EBITDA) might be The discount between Buzzi and its European peers remains in

seen as of 2026, but rising variable costs need to be translated place.

into pricing. FCF yield is moderately attractive, but less than in the past, due

Buzzi's sound balance sheet provides room to fund to our expectation of rising capex.

decarbonisation capex and to capture M&A opportunities. The Risks to our rating

net cash position and high FCF would allow it to raise the Additional deterioration in cement volumes or prices in key

dividend payout.