Stifel downgrades its recommendation on CRH from 'buy' to 'hold', despite raising its target price from $80 to $82, seeing only limited potential for the stock that was for years one of its favorite names in the construction sector.

The broker acknowledges that CRH has a reasonable exposure to housing, but notes a heavy exposure to North American infrastructures and a 'seasonality that is, surprisingly, less defensive than what we see for the sector'.

While its valuation approaches point to intrinsic value, Stifel concedes that 'this may ignore the potential for earnings uplift from a strong US infrastructure market and the group's significant financing capacity'.

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