Morgan Stanley Raises CRH (CRH) Price Target to $110 on EBITDA Growth
A pile of cement on the top of the wheelbarrow in construction site.
Morgan Stanley based their decision on CRH's EBITDA growth. The analysts cited a 1% increase in CRH's FY25 EBITDA forecast and a 2% increase for FY26. These increases, the firm noted, are driven by a weaker U.S. dollar, which boosts the EBITDA of CRH's International Solutions segment. The firm's FY25 EBITDA estimate is 3% above the Visible Alpha consensus, primarily due to CRH's recent merger and acquisition activities, which are expected to enhance financial performance. The new price target of $110, according to Morgan Stanley, reflects a 'rerating of sum-of-the-parts peers.'
For Q2 2025, Morgan Stanley forecasted EBITDA of $2.41 billion, aligning with consensus estimates. However, they expect lower year-over-year EBITDA margins due to reduced land sales in the Americas Materials segment, the impact of the Adbri acquisition in the International Solutions segment, and continued negative organic trends in the Americas Building Solutions segment.
CRH PLC (NYSE:CRH) is a global leader in the building materials industry. The company is headquartered in Dublin, Ireland, and supplies aggregates, cement, asphalt, and concrete products for infrastructure, commercial, and residential projects. It operates across North America, Europe, and Australia, serving critical sectors such as transportation, energy, and telecommunications. CRH's strategic shift toward North America, robust cash flows, and exposure to long-term infrastructure spending are key reasons for its inclusion among top-rated materials stocks.
While we acknowledge the potential of CRH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Organic Food and Farming Stocks to Buy Now and 13 Best Blue Chip Stocks to Buy According to Analysts.
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