Wienerberger Falls as Kepler Tells Investors to Cut Stock

Wienerberger AG, the world’s biggest brickmaker, fell after analysts at Kepler, Berenberg and Davy said the stock was overvalued following a monthlong rally.

Shares fell 0.9 percent to 11.30 euros a share today in Vienna. The stock has risen 27 percent since July and 67 percent in the last 12 months, making it one of the best performers in the 54-member Bloomberg EMEA Building Materials Index.

“We believe that the stock has already priced in a full recovery in Europe, which we do not see yet,” wrote Vienna-based Kepler Cheuvreux analyst Stephan Trubrich in a research note. He advised clients to stop holding the stock and to reduce Wienerberger shares in their portfolios.

Wienerberger reported second-quarter earnings before interest, taxes, depreciation and amortization of 104.2 million euros ($139 million) today. The company cut its Ebitda forecast for 2013 by 20 million euros, to 260 million euros, last month after a long winter and floods in central Europe weighed on first-half profit.

Analysts at Berenberg and Davy also said that Wienerberger shares look expensive in light of earnings. Analysts project an 8.85 euro average price target for the next 12 months, suggesting a 19 percent downside potential, according to data compiled by Bloomberg.

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