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CRH upgraded by Goldman Sachs

CRH was upgraded from neutral to buy by Goldman Sachs; the US investment bank stated it is its top pick of European construction stocks.

CRH CEO Albert Manifold
Source: Bloomberg

The Irish building materials supplier recently revealed a first-half profit of €61 million, which compared with a loss of €71 million for the same period in 2013. Revenues increased in Europe and the US by 7% and 1% respectively. CEO Albert Manifold described the performance as ‘encouraging’ and said that the company is returning to growth. Goldman Sachs cited the recovery in Europe and potential growth in the US as reasons for the upgrade.

The full-year figures for 2014 will be announced in February 2015. Analysts are estimating a net profit of €599 million and revenue of €18.79 billion, which would be an increase of 38% and 4% respectively from 2013.

Analysts are a touch on the bullish side; out of the 36 recommendations, 10 are buys, 16 are holds and 10 are sells.

CRH is listed on the Irish Stock Exchange, London Stock Exchange and New York Stock Exchange in the form on an ADR, the stock is quoted in it relative currency’s.

Looking at the London listing, the stock has bounced off £13 a number of times in the past two years. If the turnaround continues, the stock could target £15.89.

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