Berenberg Reiterates Saint-Gobain at Buy After H1 Report; Price Target Trimmed

06:52 AM EDT, 07/31/2026 (MT Newswires) -- Berenberg maintained its buy rating on Compagnie de Saint-Gobain (SGO.PA) as analysts noted "improving signals" following the company's first-half results. "With our expectation for the group to deliver a small decline in EBIT in FY26, the year has proven to be more challenging than we had expected, with inflationary pressures providing an unexpected headwind to profit progression. On a brighter note, and looking ahead, we are encouraged by the improvement in organic sales growth in Q2 while we think the group's ongoing portfolio evolution (which we think is now more focused on acquisitions than divestments) should aid margin progression over the mid-term," according to a Friday note. The French construction materials group reported an organic sales growth of 0.7% for the first half, or 3.5% in the second quarter. Meanwhile, Saint-Gobain's first-half sales of 23.60 billion euros and operating income of 2.59 billion euros were down 1.1% and 7.5%, respectively, on an annual basis. Against this backdrop, Berenberg reduced its EBIT forecasts for 2026 to 2028 by an average of 3%, with the stock's price target down to 95 euros from 100 euros. Sales and EPS projections were also lowered across the three-year period.