RBC Capital Markets has lowered its economic outlook for Amrize amid disappointing quarterly results and revised full-year forecasts, highlighting increasing sector pressure and investor caution.
RBC Capital Markets has cut its view on Amrize after the building materials company reported a weaker-than-expected second quarter and reduced its full-year outlook, according to Investing.com. The broker lowered the shares from “Sector Perform” to “Underperform” and trimmed its price target to $48 from $60, reflecting deeper concern over the company’s near-term execution and earnings power.
The move follows a sharp sell-off in the stock after Amrize’s latest results, when the company said revenue slipped 1% year on year and EBITDA fell 6%, with margins narrowing by 150 basis points. Investing.com reported that Amrize was the only major heavyside company to miss consensus second-quarter estimates and cut guidance, a combination that has raised questions about how quickly management can steady performance.
RBC also reduced its earnings forecasts, cutting its per-share estimates by 12% for fiscal 2026, 14% for fiscal 2027 and 15% for fiscal 2028, while lowering EBITDA projections by 4%, 6% and 7% over the same period. The bank said Amrize now has to compete directly with larger peers rather than with the divisions it used to sit alongside, and that it needs to improve results to stand out in the sector. Investing.com separately noted that the shares were trading close to a 52-week low.
The latest downgrade adds to a pattern of caution from analysts. In earlier commentary, RBC had already cut its price target to $54 from $61 while keeping an “Outperform” rating, and another note argued that the company could have handled investor communication more proactively. Truist Securities has also turned more cautious, downgrading the stock to “Hold” from “Buy” and cutting its target to $48, citing pressure in commercial roofing and limited near-term upside in cement pricing.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
