CRH Stock Priced at 32% Discount Says Analyst

CRH’s (LON: CRH) share price rose 2.9% on Friday after Morgan Stanley initiated coverage with an Overweight rating, naming it a top pick.

Analyst Cedar Ekblom argued that CRH’s integrated business model delivers higher cash conversion and better returns than upstream-focused peers, yet the stock remains priced at a 32% discount. 

In a note to investors, Morgan Stanley recommended buying CRH following the recent pullback, pointing to strong fundamentals and the opportunity for significant upside.

CRH shares are down 6.4% so far this year, although they have gained 11.7% over the past 12 months. 

According to data compiled by TradingView, 21 of 26 analysts currently rate the stock a Buy, with only one analyst suggesting a Sell. The consensus 12-month price target stands at 8,466p.

Despite broader market volatility and concerns over global construction demand, CRH’s diversified model and exposure to infrastructure spending in key regions are seen as strengths. 

Morgan Stanley’s positive view reflects expectations that the company’s operational efficiency and cash generation will outperform sector peers through the cycle.

CRH, one of the world’s largest building materials suppliers, shifted its primary listing to New York in 2023, which analysts believe has helped broaden its investor base.