RBC Capital cuts Breedon price target, maintains 'outperform'
RBC Capital Markets cut its price target on Breedon Group Plc on Thursday to 575p from 625p as it trimmed its estimates.
The bank pointed to rain and ice in the US, climate change challenges in Ireland and low ready mix volumes in GB.
It said Breedon has seen the worst weather trends of all the building materials companies under its coverage.
The integration of BMC and Lionmark are on track, the US business is growing, but with 31 days of sub-zero temperatures in January and February and the wettest April in 132 years, the weather in Missouri and St Louis has not been kind to construction volumes, it said.
"Temporary challenges may weigh on the share price, but in our mind the medium term investment case has not been derailed, and we would view any share price weakness as a buying opportunity," RBC said, keeping its 'outperform' rating.
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