Goldman Sachs on Friday downgraded Holcim AG (SIX:HOLN) shares to Neutral from Buy after a strong share price run left valuation looking full, though the bank remains confident in the group’s strategic positioning.

Shares in the Swiss cement maker fell more than 2%.

The recent rally has reduced the scope for further upside in Holcim, with Goldman’s new 12-month price target of 80 Swiss francs implying 0% upside from current levels.

“We move Holcim to Neutral (from Buy) after recent multiple expansion leaves limited further upside,” Goldman analyst Ben Rada Martin said in a note. 

Since being added to Goldman’s Buy List in early September, Holcim shares are up around 23%, materially outperforming broader European benchmarks over the same period.

Martin said that while he remains “a strong believer in Holcim’s differentiated strategies,” recent multiple expansion has shifted the risk-reward profile to a more balanced footing.

The analyst highlights several areas where Holcim is seen as leading peers, including European decarbonisation, ongoing cost discipline, and strategic M&A activity in Latin America.

He reiterated that European decarbonisation should support longer-term cost leadership as carbon costs rise, while further margin expansion is expected from corporate cost reductions following the Amrize spin and rationalisation of clinker capacity.

However, he also flagged a number of factors that temper near-term enthusiasm. These include moderation in AMEA earnings growth following the disposal of the Nigeria business, execution risks around Latin American M&A integration, and the early-stage nature of Holcim’s expansion into building solutions.

From a valuation perspective, Holcim now trades in the top quartile of Western European heavyside peers on forward earnings, with a premium to the Swiss market that is well above its long-term average, Martin said. His scenario analysis now points to “balanced risk/reward,” underpinning the downgrade.