Goldman Sachs analysts Jim Huang and Rowena Chang echoed her view, saying in a report dated last Wednesday that rising coal prices would further squeeze cement producers’ gross margins.
Citigroup offered a “buy” rating on Taiwan Cement shares, with a target price of NT$37. It also recommended a “buy” on the stock of Asia Cement, with a target price of NT$42. Goldman Sachs also reiterated “buy” ratings on both Taiwan Cement and Asia Cement, with 12-month target prices of NT$56 and NT$53 respectively.
Taiwan Cement shares closed up NT$0.25 yesterday to NT$31.35 while Asia Cement closed up NT$0.6 to NT$35.7.
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