02:32 AM EST, 11/09/2026 (MT Newswires) -- Berenberg downgraded its rating and earnings forecasts for Amrize (AMRZ.SW), flagging "lingering concerns" regarding the Swiss-listed building materials company's roofing business despite expectations for a "better" 2027. "We have four concerns about Building Envelope. Firstly, with the group ending FY26 with a negative price/cost spread, we worry that some pressures could persist into FY27, and we reverse our prior expectation for a 30bp margin increase in FY27 to now a decline of 20bp. Secondly, with still challenging affordability metrics, we think the group's residential roofing exposure (which we estimate to be c35% of the division) will remain soft into FY27. Third, while we are not materially changing our forecasts, we note the potential risks to the data-center construction growth trajectory following the US midterm elections, an end-market that has been important for Amrize's commercial roofing operations. Finally, while a midterm issue rather than an FY27 issue, we note a new entrant into US commercial roofing that could pose a competitive threat to incumbent players over the next few years," according to a Monday note. The research firm cut its EBITDA forecasts for Building Envelope by 9% on average for full-year 2027 through 2028 on reduced revenue and margin forecasts for the two years. Analysts also trimmed their sales, EBIT and EPS assumptions for 2026 through 2028. Against this backdrop, Berenberg lowered the stock's rating to hold from buy and trimmed its price target on the US stock to $46 from $48. "While valuation looks attractive on a sum-of-the-parts valuation, we do not expect the valuation gap to close any time soon," analysts wrote, noting they see "more compelling upside opportunities" in the industry.

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