DA Davidson Downgrades CRH (CRH) Stock to Neutral

CRH plc (NYSE:CRH) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 10, DA Davidson downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $105, down from the prior target of $120, as reported by The Fly. The firm sees moderating growth rates as likely limiting further significant re-rating potential in the near term. However, M&A and buybacks are the tools that CRH plc (NYSE:CRH) should be expected to utilize, believes the firm’s analyst.

A construction worker wearing a hard hat and safety glasses at a site, carrying concrete blocks.

The firm likes the story and the US leverage, but is still moving to the sidelines since the current demand drivers might limit core growth. The strength of CRH plc (NYSE:CRH)’s Q1 2025 performance demonstrates the benefits of its differentiated strategy, good commercial management, and contributions from acquisitions. Notably, the adjusted EBITDA of $495 million, compared to $445 million in Q1 2024, was 11% ahead due to the continued delivery of CRH plc (NYSE:CRH)’s differentiated strategy, positive pricing, ongoing cost control, and further operational efficiencies.

In the three months ended March 31, 2025, CRH plc (NYSE:CRH) completed 8 acquisitions for a total consideration of $0.6 billion. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“CRH plc (NYSE:CRH) is the largest building materials company in both North America and Europe and supplies products for construction and infrastructure projects such as roads, highways, bridges, and commercial and residential buildings. Its products include materials such as aggregates, cement, asphalt, and concrete, as well as critical utility infrastructure and outdoor living solutions.

CRH is currently trading at 8.7 times 2025 estimated cash flow, while vertically integrated construction materials peers, who are not as big as CRH and do not have the same track record of consistent performance, have traded as high as 13 times cash flow. Aggregates focused peers with similar construction project exposure trade at approximately 16 times cash flow.”

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Disclosure: None. This article is originally published at Insider Monkey.