Heidelberg Materials Kept at Buy as Berenberg Notes Q2 Volume Recovery

07:02 AM EDT, 09/09/2026 (MT Newswires) -- Berenberg maintained Heidelberg Materials (HEI.F, HEI.VI) buy rating and price target of 215 euros, noting the German building materials company's second-quarter volume growth rebound and discounted valuation. "The Q2 result neatly illustrated some of the mixed factors impacting the company currently. On the one hand the company suffered margin erosion as it was not able to move prices higher quickly enough to offset the latest round of energy cost inflation, but on the other hand we note that Q226 was the first quarter since Q122 that the company has reported volume growth, highlighting just how challenging end-market conditions have been for the past four years. We maintain our positive view as we think Heidelberg Materials is well placed to deliver solid mid-single-digit operating profit growth over the mid-term, aided by an acquisition strategy that we think will account for about one-third of growth on average," according to a construction sector outlook report published Tuesday. Beyond the expected profit growth, the research firm said it expects post-tax return on capital employed to reach 11%, reflecting a "vastly improved" capital discipline at the company over the past five to 10 years. Any broader rebound in European construction activity would offer a "clear incremental benefit" to earnings momentum, analysts added. "With these two factors in mind - profit growth and improved returns - we think the valuation - at 8x EBITDA and with an 8% free cash flow yield - is just too cheap to ignore," Berenberg wrote.