BUZZ - RBC expects gradual improvement in North American and European building materials stocks in the third quarter
路透社2026/10/09 07:16October 9 - RBC expects the performance of most European building material products to gradually improve quarter-on-quarter in Q3, but notes that geopolitical uncertainties in the US will continue to drive up cost inflation and increase market volatility. RBC anticipates that sales in Europe will remain sluggish due to heatwaves and rising mortgage rates, while a weak US housing market and the lack of a significant hurricane season will prompt roofing material companies to enter a destocking cycle. The firm is more optimistic about Germany’s Heidelberg Group (HEIG.DE), upgrading its rating to “outperform,” and points out that the company has handled the challenging quarter caused by extreme weather far better than its peers. Due to severe cost headwinds such as rising diesel and natural gas prices, RBC downgraded the ratings of US and French construction companies Knife River (KNF.N) and Saint-Gobain (SGOB.PA) from “outperform” to “market perform.” (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Since automated translations may contain errors or lack necessary context, Reuters does not guarantee their accuracy and provides them solely for the ease of the reader. Reuters assumes no liability for any damages or losses that may arise from the use of automated translation functions.)
October 9 - ** RBC expects the performance of most European construction material products in the third quarter to gradually improve quarter-on-quarter, but notes that geopolitical uncertainty in the United States will continue to drive up cost inflation and exacerbate market volatility.
** RBC expects European sales to remain sluggish, affected by heatwaves and rising mortgage interest rates; while a weak U.S. housing market and the absence of a notable hurricane season will drive roofing material companies into an inventory reduction cycle.
** The broker is more optimistic about Germany's Heidelberg Group HEIG.DE — upgrading its rating to "outperform" — and points out that the company performed far better than its peers in responding to the tough quarterly challenges brought by abnormal weather.
** Due to severe cost headwinds such as rising diesel and natural gas prices, RBC downgraded the ratings of U.S. and French construction companies Knife River KNF.N and Saint Gobain SGOB.PA from "outperform" to "sector perform".
(To facilitate non-native English speakers, Reuters has automated the translation of its reports into several other languages. Because automated translation may contain errors or lack needed context, Reuters does not guarantee the accuracy of automated translation texts and provides them only for the convenience of readers. Reuters bears no responsibility for any damages or losses caused by the use of automated translation services.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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