SADIF Analytics Assigns Positive Long-Term Outlook Rating to Lafarge SA
Released on: October 23, 2008, 8:25 am
Press Release Author: SADIF Investment Analytics SA
Industry: Financial
Press Release Summary: SADIF-Investment Analytics SA has applied its StockMarks(tm) stock-rating system to Lafarge SA and produced a research report, rating the company's attractiveness to long-term investors.
Press Release Body: Mira, Portugal - October 23, 2008 - SADIF Investment Analytics SA, today announced the release of a new equity research report covering Lafarge SA (LG). The report utilizes SADIF's powerful StockMarks(tm) stock rating system and is required reading for any current or potential Lafarge SA investor.
Report Summary: French construction materials company Lafarge S.A. Has experienced a fifty-five percent decline in its share price since May. Investors fear that the credit crunch will limit the number of large new construction projects, crippling the company's sales. When Lafarge reported earnings for the six months to the end of June, the company's results revealed weakness in some of its key developed markets, including the USA, UK and Spain. Emerging markets in Asia and Eastern Europe were the driving force behind the 8% increase in both sales and income compared to the second quarter of 2007. The company's current share price reflects investor opinion that Lafarge will find it difficult to maintain this growth as the credit crisis continues its viral spread to emerging markets. Rival cement producer CRH has already noticed weaker sales growth in Central and Eastern Europe and it is likely that Lafarge faces a similar problem. However, Lafarge has very ambitious targets set for 2010, including increasing EPS to EUR 15 from its current TTM EPS of EUR 10.35. Management reaffirmed these targets in the company's last results press release in July. Therefore, Lafarge may make an attractive long-term investment given the recent decline in the company's share price. We can use the StockMarks framework to assess whether the sell-off in Lafarge shares undervalues the company's underlying fundamentals. Lafarge currently has an overall long-term investment-attractiveness rating (Total StockMark or SMT) of 72, placing the company well above the market average. This rating ranks Lafarge third when compared to ten of its closest peers, selected on the basis of both similarity of business and market positioning factors such as size.
The complete report breaks down the Total StockMark into its three components - Business, Management and Price, performing a thorough analysis of Lafarge SA for long-term investors.
A summary of the StockMarks(tm) ratings for Lafarge SA is available here: http://sadifanalytics.com/stockmarks/company.php?ticker=LG&cod_country=37
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites or directly from SADIF-Investment Analytics SA at http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=37
About SADIF-Investment Analytics SA SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks(tm) system is based on proven investment principles and is designed to drive long-term shareholder returns.
Web Site: http://www.sadifanalytics.com
Contact Details: Company: SADIF-Investment Analytics SA Address: AIBAP, Rua do Matadouro, 3070-436 Mira, Portugal Phone Number: (+351) 231849038 Website: www.sadifanalytics.com Email: press@sadifanalytics.com