Broker snap: Deutsche Bank upbeat about European construction

RELATED QUOTES

SymbolPriceChange
LG.PA67.20+0.35
DBK.DE32.19+0.14
VCISF74.500.00
HDELY17.27-0.05
CRH29.07-0.36

LONDON (ShareCast) - Analysts at Deutsche Bank (Xetra: 514000 - news) have shown they are optimistic about the European construction sector next year, reiterating their positive outlook for the industry.

As a result of a rosier outlook, the German bank revised higher most price targets in the sector.

Deutsche Bank upgraded UK-listed building materials firm CRH (NYSE: CRH - news) to 'buy' in spite of its still-subdued performance in European markets.

"After having been severely penalised by its sizeable developed market exposure in 2012, our economic recovery expectations combined with high private construction exposure, high operating leverage and additional cost savings lead us to believe that the stock should re-rate strongly in 2013," analysts said.

Deutsche Bank also singled out French company Lafarge (Paris: FR0000120537 - news) , keeping it on its preferred stock list for the materials sector and raising the price target from €48.90 to €65.40. It also has 'buy' ratings for two other French companies: Vinci (Other OTC: VCISF - news) and Eiffage (Paris: FR0000130452 - news) .

Analysts also reiterated their positive stance for German company HeidelbergCement (Other OTC: HDELY - news) .

In Spain, Deutsche Bank has a 'buy' rating for Ferrovial and OHL. It raised the price target for the latter from €23.50 to €26 and lowered its price target for the former from €13.60 to €13.00. The changes give them an upside potential of 16% and 21%, respectively.

MJ