Investing.com - UBS initiated coverage on Amrize Ltd (OTCBB:AMRZ) with a neutral rating and a $53.00 price target on Tuesday.
The investment bank cited Amrize’s attractive medium-term growth potential supported by strong U.S. construction market fundamentals, while noting short-term headwinds from the current interest rate environment.
UBS projects Amrize will generate approximately $8.05 billion in free cash flow between 2025 and 2028, slightly exceeding the company’s guidance of more than $8 billion, which could support future merger and acquisition activities.
The firm believes Amrize shares are currently trading close to fair value at 8.9 times EV/EBITDA and approximately 6% free cash flow yield for 2026 estimates, with shares already pricing in a post-tax return on invested capital of about 14.5% in perpetuity compared to roughly 10% expected in 2025.
UBS identified a key consideration for investors as determining what multiple Amrize should fundamentally trade at, given the significant growth expectations already reflected in the current share price.
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