Buzzi Unicem - Slow start but momentum building

Davy Research
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There are no great surprises in Buzzi Unicem’s Q1 sales update. Weather hurt activity in the US and Eastern Europe, while Italy and the Benelux bounced back off lockdown lows. Guidance is unchanged despite better demand trends (March rebound). Importantly, the US kicked back into gear after a poor February which will be key to earnings this year. So too will pricing in the face of rising input costs. That remains a positive story, with prices higher in all but one market. Strong trading in Mexico and Brazil, as well as a rebound in oil well cement sales (Russia), will further help. The stock is very cheap but lacks catalysts.