Buzzi Unicem continues to run in Piazza Affari. The share of the company specializing in the production of cement today gains 2,23% around 22 euros, achieving one of the best performances of the Ftse Mib (-0,07%). Over the past month, Buzzi shares are up more than 10%. The purchases are driven by the hopes relating to the possible infrastructure plan that could be approved in the United States by the new administration led by Joe Biden.
Despite the very serious events that took place on Wednesday January 6 on Capitol Hill, with the assault on the Capitol carried out by hundreds of Donald Trump supporters, the victory in Georgia of the two Democratic candidates for the Senate, Raphael Warnock and John Ossoff, handed over control of Congress to the Democratic Party. After the majority in the Chamber won in the elections of November 3, the Dems will be able to count on 50 seats out of 100 in the Senate. The vote of the vice-president-elect, the Democrat Kamala Harris, will therefore be decisive.
What does Buzzi have to do with all this? By controlling Congress, the dems will have a better chance of implementing the reforms promised in the electoral campaign. “Democrats have already presented an infrastructure plan (the Moving Forward act) approved by the Chamber in July 2020 but then rejected by the Senate (then controlled by the Republicans)”, recall the analysts of Equita. Having a majority in both houses of Congress, Democrats will be able to insist on the plan he envisages total investments of 1,5 billion over 5 years focused on roads, bridges, ports, the railway system, clean energy, schools and broadband services, with an increase in annual federal spending on infrastructure of around 42% compared to the current plan expiring at the end of 2021. Not surprisingly on Wall Street it has already begun the big rotation.
Buzzi Unicem in the USA realizes 55% of its Ebitda and could therefore become one of the main beneficiaries of the new administration's infrastructure plan. In the construction sector, writes Equita, "we believe that Webuild (+4,52%) which through Lane generates 20% of turnover (2019) can benefit from the infrastructure plan being particularly exposed to investments in bridges, motorways and railways". Potential beneficiaries also include Trevi (+4,36%), which generates 22% of revenues in North America, Prysmian (+1,67%), which generates 35% of group Ebitda in North America and Cnh Industrial (-0,08%) whose construction equipment division in 2019 generated 10% of group turnover (of which 50% in the USA), but only 3% of the operating margin.
