Heidelberg Materials Target Trimmed, Buy Rating Affirmed

Jefferies analyst Glynis Johnson lowered the price target for Heidelberg Materials from €290 to €286 on Thursday, while keeping the investment bank's 'Buy' rating following the release of the building materials giant's second-quarter figures.

The modest €4 reduction, just 1.4% below the prior target, reflects the fine-tuning of near-term expectations rather than a shift in conviction. Johnson's note points to signals of increasing sales volumes, the prospect of further price increases in the coming months, and the potential for additional cost reductions as reasons for a possible improvement in market sentiment after the summer break.

Heidelberg Materials, one of the world's largest producers of cement, aggregates and ready-mixed concrete, has been navigating a mixed construction backdrop but has shown resilience through operational efficiency measures.

Volume Growth and Pricing Power Could Lift Heidelberg Sentiment

What the Analyst Sees in Volumes and Pricing

At the heart of Jefferies' stance is the expectation that Heidelberg Materials will be able to push through higher prices while demand gradually firms. The note suggests that even if volumes are still climbing, management's focus on price discipline could expand margins. A sustained recovery in construction activity, particularly in Europe and North America, would likely provide tailwinds. The small target trim indicates that the second-quarter performance may have come in slightly light, but not enough to dent the long-term case.

Cost Cuts and the Seasonal Sentiment Shift

Johnson also flags the possibility of further cost savings, which would help Heidelberg offset ongoing headwinds from high energy and raw material costs. The market often neglects building material stocks during the relatively quiet summer months, and the analyst argues that sentiment could improve once trading volumes return in autumn. That seasonal pattern could give investors an opportunity to position themselves ahead of what Jefferies believes will be a stronger pricing and volume environment in late 2026.