Berenberg Keeps Saint-Gobain at Buy Amid Expectations of Improved Volume Demand in Europe

07:37 AM EDT, 09/09/2026 (MT Newswires) -- Berenberg reiterated its buy rating on Compagnie de Saint-Gobain (SGO.PA) amid expectations that the French building materials group will see an improvement in European volume demand from 2027. "We think that 2026 will end up a more challenging year for Saint-Gobain than we had originally envisioned, which is partly due to still weak trends in developed markets residential demand but also the impact of energy cost inflation from geopolitical events in the Middle East. As such, we think FY26 will be the fourth consecutive year of muted profit results. However, we keep our positive view as we continue to believe there is scope for both cyclical and structural-driven improvements from 2027," analysts said in a construction market outlook report published Tuesday. "On the former we are getting more confident in improved volume demand in Europe from next year, citing the better lfl performance at Q2, and we will watch closely to see if this is repeated at Q3, which we think would be a very positive signal." The research firm also positively views the group's continued search for more acquisitions as part of efforts to evolve its business portfolio, noting that this would support structural margin growth and result in a more streamlined portfolio. The stock's price target of 95 euros was maintained.