Holcim shares show potential following strong quarterly results

Holcim shares rose by 5.0 percent following the release of convincing quarterly financial results, driven by improvements in cost management and sales prices. The building materials manufacturer reported an operating profit increase that outpaced year-on-year growth, mitigating previous concerns regarding high energy prices.

While profit contributions from Europe fell slightly short of expectations, performance in other regions, particularly Latin America, exceeded forecasts. Analysts from Zürcher Kantonalbank noted the company's ability to achieve above-average profitability despite challenging conditions, suggesting a fair value of 84 CHF for the stock.

Following a period of price correction, Vontobel indicated that fears of downward revisions to consensus estimates have likely subsided. Despite being among the SMI laggards earlier in the year, market participants see potential for a recovery toward previous highs.