Investors are keenly watching Amrize (AMRZ) as it completed its spinoff from the Swiss giant Holcim AG (HCMLY) and started trading on the New York Stock Exchange on Monday.
In a post spinoff interview with CNBC, the company’s chief executive, Jan Jenisch, said AMRZ is a “growth company” with “more than 1,000 sites” that currently supply to the entire U.S.
Why Is CEO Jenisch Bullish on Amrize Stock?
CEO Jan Jenisch expects Amrize to grow at a compound annualized rate of up to 11% moving forward.
According to him, the company will likely attract significant demand from the U.S. investors given it’s America’s largest cement supplier, which has doubled its sales from $6 billion over the past five years.
“I think we have been the most successful company in the last five years in the building sector,” he told CNBC on Monday.
Additionally, AMRZ shares offer industry-leading margins and stand to benefit from the expected increase in construction demand on the back of U.S. commitment to building new AI data centers.
Analysts Recommend Caution in Owning AMRZ Shares
Despite the aforementioned positives, analysts aren’t particularly thrilled about Amrize stock at current levels.
In a research note this morning, Mark Diethelm, senior equity research analyst at Vontobel, warned that a subdued construction market in the U.S. could hurt the cement supplier that completed its spinoff from Holcim this week. .
Diethelm assumed coverage of AMRZ shares with a “Hold” rating on Monday, saying there isn’t much room to the upside given they’re already trading near his price target.
In fact, the Vontobel expert sees Holcim stock following the Amrize spinoff as better investment for exposure to the construction space since it’s “both a growth and a profitability expansion story.”
Investors should also note that UBS analysts have also initiated coverage of Amrize stock with a “neutral” rating today. Their $53 price target also supports that the company’s shares do not have any meaningful upside potential left.
