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

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