On a Ftse Mib which dropped by more than one percentage point in the middle of the morning, the share of Buzzi Unicem shines against the trend, traveling up by 1,5%, to 10,92, achieving the best performance on the list.
The listing is supported by a report by Morgan Stanley, which raised the recommendation to "overweight" from "equalweight", bringing the price target to 13,75 euros from 12,90. According to the broker, the risks on the Russian market have excessively penalized the share, which therefore has room for recovery also due to the expected performance in other countries.
“We expect negative volumes in Russia this year and an even more negative price evolution – write the analysts – This downgrade is first of all compensated by the better results of the Czech Republic and Ukraine and also by the lower depreciation and higher profits of Mexico” .
The fears that further sanctions against Russia will hit the construction sector remain, so much so that Morgan Stanley's estimate is an "extreme" scenario with -25% in volumes and -30% in real prices: however, this would lead to a target price of 11,75 euros for Buzzi, with further room for growth for the share to which should be added the more optimistic prospects on two key markets such as the USA and Italy.
