Italy's Buzzi falls after UBS cuts to 'sell' on earnings pressure

By Reuters News

** UBS cuts its rating of Italy's Buzzi BZU.MI to "sell" from "neutral", citing import pressures and CO2 allowances cost expected to drive lower earnings

** The brokerage sees earnings per share (EPS) downgrades between 10% and 25% for FY27 to 2030, given exposure to a weak-demand US cement market

** UBS points out that around half of Buzzi's US revenue comes from southern states, where cement imports rose sharply in recent years, and price growth is now seen as "highly unlikely"

** "In Europe, Buzzi already needs to purchase CO2 allowances," it adds, seeing the cost effectively reducing the operating leverage to potential construction recovery in the region

** UBS cuts its PT by almost 35% to €34.0

** Shares in the cement maker are down around 3% to €36.4; including today's fall, the stock has dropped by around 30% YTD

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