AlphaValue/Baader Europe Cuts Price Target, EPS Estimates for Holcim Amid 'More Conservative' Earnings Conversion

01:16 AM EDT, 08/11/2026 (MT Newswires) -- AlphaValue/Baader Europe lowered its price target and EPS forecasts for Holcim (HOLN.SW) to reflect earnings pressures despite the building materials company's robust operating momentum. "We have lowered our FY2026/27 Benchmark EPS estimates, taking a more measured view on the conversion of Holcim's strong operating performance into per-share earnings," analysts said Monday. "Our revised estimates continue to assume healthy organic growth and further operating leverage, while incorporating a more conservative earnings conversion through FX, depreciation and other below-the-line items. Management also indicated that the improved guidance does not imply a slowdown in H2 and left open the possibility of revisiting it in Q3 if current momentum persists." As such, the research firm's full-year 2026 and 2027 EPS estimates fell 19.7% and 16.1%, respectively, to 4 francs and 4.99 francs. AlphaValue/Baader Europe also cut its price target for Holcim by 4.97% to 87.5 francs, while noting the estimate revision does not change its positive stance on the company. "H1 confirmed strong organic momentum, positive price/cost across all regions and continued margin progression, while the raised guidance floor still leaves scope for further upside should the current trading pace continue. The medium-term drivers are also intact: disciplined pricing, lower corporate costs, rising efficiency benefits and continued portfolio expansion through M&A. Cash generation remains strong, giving Holcim room to fund investment and acquisitions while maintaining balance-sheet flexibility. Against that backdrop, we view the lower EPS estimates as a moderation of our previous earnings," the note said. AlphaValue/Baader Europe has an add rating on the stock.