JPMorgan adjusted its price target on Saint-Gobain stock, signaling confidence in the company's growth prospects. The financial services firm now sets its December 2025 price target (PT) at €105.
This change reflects JPMorgan's belief in the potential for Saint-Gobain's valuation gap with its peers to narrow. Saint-Gobain's stock has seen a 14% increase since the announcement of its first-quarter results on April 25.
The rise is attributed to factors specific to the company, including a reassuring outlook from management and positive commentary from peers in the Lightside building materials sector.
JPM says that investors have been inquiring whether the recent jump in Saint-Gobain's shares is complete or if there is room for further growth. JPMorgan's stance is that the stock jump is just beginning, as anticipated, with the exit from a recessionary period.
The valuation of Saint-Gobain continues to be an anomaly, according to JPMorgan, with the stock trading at a 40% discount compared to its peers.
Despite potential softer macroeconomic data that may affect the sector, JPMorgan maintains a positive outlook on the company's future performance.