Brookfield, GIC close to finalizing $2.65 billion offer for National Storage - report

Investing.com -- The global building materials sector heads into 2026 with expectations for outperformance concentrated among companies with significant exposure to U.S. infrastructure spending and active in mergers, acquisitions and internal efficiency programs, according to analysts at RBC Capital Markets in a note dated Monday 

Peak disbursement under the U.S. Infrastructure Investment and Jobs Act (IIJA) is expected in 2026 and 2027. The brokerage identifies Breedon, CRH and Knife River as the names with the highest implied upside potential based on valuation analysis.

Across the sector, the brokerage states that market conditions seen through 2025 are expected to continue into the first half of 2026, with no major shifts anticipated. 

Broader improvement later in the year would rely on lower interest rates and faster conversion of infrastructure budgets into physical activity, but the report notes there is no clear line of sight on either catalyst.

It flags Mexico as a market that outperformed expectations during 2025 and could again in 2026, with residential and infrastructure spending stronger than anticipated.

RBC Capital Markets assigns “outperform” ratings to Breedon, CRH and Knife River, describing the three as the most leveraged to U.S. public infrastructure, M&A and internal operational programs. 

Breedon, a U.K.-based aggregates and cement producer expanding in the United States, is noted as positioned to benefit from an expected volume recovery in U.K. residential building and continued U.S. acquisition activity. 

CRH, the largest IIJA beneficiary in North America, is described as combining infrastructure tailwinds with a strong M&A track record and vertically integrated operations. 

Knife River, a U.S. infrastructure and construction materials provider, is presented as benefiting from road spending exposure and self-help initiatives identified as the EDGE strategy.

The brokerage upgraded Cemex, the Mexican cement and materials producer, to “sector perform” from “underperform,” citing stronger-than-expected economic outcomes following political transition and early progress under new CEO Jaime Muguiro. 

Downgrades are issued for Amrize, Heidelberg Materials and Sika. Amrize, a U.S. cement and roofing materials provider, moves to “sector perform” from “outperform” due to subdued U.S. cement volume outlook and weak storm-season roofing demand. 

Heidelberg Materials, the global cement producer focused on decarbonization, is cut to Sector Perform after shares rose about 80% in 2025, with expectations already reflected in consensus. 

Sika, the Swiss construction chemicals company, receives a downgrade based on slower APAC recovery expectations and 2026 viewed as a transition year.

Valuation metrics in the report show the greatest implied upside at Breedon, Knife River and CRH. Martin Marietta and Vulcan Materials, two large U.S. aggregates companies, retain Sector Perform ratings due to valuations viewed as reflecting embedded assumptions. 

Cemex’s new price target is $11.25 from $8.25. Amrize is set at $60, and Sika at CHF184. Knife River’s target is $106, while CRH’s is $164.

Regionally, the brokerage states that Europe shows early signs of stabilization in residential markets tied to lending trends, while near-term indicators in France remain weak under political and bond-yield pressures.

The U.K. market is expected to see gradual residential improvement in 2026 amid contracting PMI data and muted pricing. Germany faces further residential declines in 2026 due to lagged impacts from historically weak housing starts.

The U.S. remains the primary sector growth driver through public infrastructure allocations, while Mexico continues to outperform expectations. China remains challenged with no near-term recovery identified.

The brokerage added that performance gaps between companies will be shaped less by broad demand recovery and more by capital deployment and infrastructure exposure. 

Investing.com -- UBS Group may reduce its workforce by an additional 10,000 positions by 2027, according to a report published Sunday by Swiss newspaper SonntagsBlick.

The publication did not disclose the source of this information.

In response to the report, UBS did not confirm the specific number of potential job cuts. The bank stated it would "keep the number of jobs cuts in Switzerland and globally as low as possible."

UBS added that any workforce reductions would be implemented gradually over several years.

The bank plans to manage these changes primarily through "natural attrition, early retirement, internal mobility and inhousing of external roles."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- L’Oreal SA (EPA:OREP) announced Monday it will acquire an additional 10% stake in Galderma Group AG (SIX:GALD), doubling its ownership to 20% as the beauty giant strengthens its position in the aesthetics market.

The French cosmetics company is purchasing the additional shares from a consortium led by EQT, which includes Sunshine SwissCo GmbH, Abu Dhabi Investment Authority, and Auba Investment Pte. Ltd.

The financial terms of the transaction were not disclosed.

Following this increased investment, Galderma’s board will consider nominating two non-independent board candidates from L’Oréal to replace the EQT consortium representatives at the 2026 Annual General Meeting.

"Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore. Our initial strategic investment made in 2024 in Galderma has proven very successful and therefore we are eager to solidify and extend the partnership further," said Nicolas Hieronimus, Chief Executive Officer of L’Oréal.

The transaction will be implemented through an off-market block trade with the EQT-led consortium. L’Oréal plans to fund the acquisition with available cash and credit lines, with closing expected by Q1-2026, subject to regulatory approvals.

L’Oréal stated it will continue to support Galderma’s strategy and independence under CEO Flemming Ørnskov and is not planning to increase its stake further. The companies will explore strengthening their existing scientific partnership to leverage their complementary expertise.

Following completion, L’Oréal will consolidate its stake in Galderma under the equity method. The previously established shareholder undertaking between L’Oréal and SSCO will be dissolved upon completion.

Investing.com -- UCB SA (BR:UCB) announced positive results from its GEMZ Phase 3 study evaluating fenfluramine for the treatment of CDKL5 deficiency disorder.

The company reported that fenfluramine significantly reduced countable motor seizure frequency in patients with the rare genetic condition. The drug was generally well tolerated during the trial, with no new safety signals identified.

Following these positive outcomes, UCB plans to submit fenfluramine for regulatory approval as soon as possible. The submission would seek authorization for the drug’s use in treating seizures associated with CDKL5 deficiency disorder.

CDKL5 deficiency disorder is a rare genetic condition that causes seizures and developmental delays. The successful trial results represent a potential new treatment option for patients with this disorder.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Auto1 Group SE (F:AG1G), a Europe-based online used-car transaction platform, rose more than 4% on Monday after Jefferies initiated coverage with a “buy” rating and a €34 price target, citing structural earnings growth potential, digital scale, and a discounted valuation relative to peers.

The broker projected a 45.4% one-year upside from the prior close of €23.4 and valued the company using a DCF model at a 10.4% WACC and 2% terminal growth rate, assigning an enterprise value of €7.14 billion and equity value of €7.45 billion, or €34 per share.

The brokerage forecast revenue of €8.12 billion in FY25 and €9.50 billion in FY26, against consensus estimates of €8.04 billion and €9.39 billion. 

Adjusted EBITDA is projected at €192.5 million in FY25 and €284.2 million in FY26, above consensus of €185.9 million and €263.8 million. 

EPS estimates of €0.43 for FY25 and €0.71 for FY26 exceed consensus figures of €0.40 and €0.66. Jefferies expects Auto1 to reach its 5-9% EBITDA margin range in FY30.

Auto1 sources cars in nine countries and sells wholesale in 33, of which nine are also retail markets, positioning it as a regional operator across consumer-to-business and business-to-consumer channels. 

Annualised sales exceed 870,000 vehicles, equal to about 3% market share, with the long-term target of 10% of used-car transactions within its 27.7 million-car footprint. 

The analysts attributed growth to demand for digital transactions, scale across sourcing and selling channels, and a financing structure enabling vehicle and loan processing at lower cost.

Gross profit per unit is above €1,170, and the Autohero retail segment has exceeded €2,600 GPU. The brokerage said financing attachments could provide incremental GPU of €250 as loan penetration increases. 

The brokerage said Auto1’s structural model supports margin improvement based on cross-border pricing transparency, logistics capability and multi-channel inventory allocation.

The business holds an efficient balance sheet, supported by non-recourse asset-backed securitisation programs covering inventory, consumer financing and dealer financing. 

Net debt excluding leases and merchant/consumer ABS is projected at negative €8 million in FY26, with cash of €608.6 million and inventory ABS liabilities of €600.6 million. 

Auto1 reported a negative cash conversion cycle of 2.5 days in 2024, compared with Carvana’s 29.3 days and CarMax’s 263.6 days, driven largely by rapid turnover in wholesale operations .

The analysts said Auto1 trades at 32.2x EV/2025 EBITDA and 21.3x for 2026, compared with Carvana at 41.2x and 31.3x, and at a PEG ratio of 1.1x versus Carvana’s 2.9x. 

Investing.com – Australia stocks were lower after the close on Monday, as losses in the Gold, Metals & Mining and Utilities sectors led shares lower.

At the close in Sydney, the S&P/ASX 200 fell 0.12%.

The best performers of the session on the S&P/ASX 200 were Liontown Resources Ltd (ASX:LTR), which rose 14.77% or 0.19 points to trade at 1.51 at the close. Meanwhile, Pls Group Ltd (ASX:PLS) added 6.05% or 0.23 points to end at 4.03 and Zip Co Ltd (ASX:ZIP) was up 5.70% or 0.17 points to 3.15 in late trade.

The worst performers of the session were Lynas Rare Earths Ltd (ASX:LYC), which fell 3.75% or 0.53 points to trade at 13.61 at the close. Iluka Resources Ltd (ASX:ILU) declined 3.41% or 0.22 points to end at 6.23 and Capricorn Metals Ltd (ASX:CMM) was down 4.39% or 0.61 points to 13.27.

Falling stocks outnumbered advancing ones on the Sydney Stock Exchange by 657 to 487 and 436 ended unchanged.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 1.60% to 10.38.

Gold Futures for February delivery was up 0.02% or 0.90 to $4,243.90 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January rose 0.20% or 0.12 to hit $60.20 a barrel, while the February Brent oil contract rose 0.19% or 0.12 to trade at $63.87 a barrel.

AUD/USD was unchanged 0.08% to 0.66, while AUD/JPY fell 0.03% to 103.12.

The US Dollar Index Futures was down 0.10% at 98.87.