Saint-Gobain Added to BofA Securities' Top Investment Ideas
The French construction materials group has been added to BofA Securities' 'Europe 1' list, according to a report published on Monday. This inclusion follows a period of significant underperformance of the stock.
Among the '25 Values for 2026'
Saint-Gobain is now included in BofA Securities' '25 Values for 2026', a selection of companies exposed to significant operational or market catalysts over the year, according to the bank’s statement. The financial institution has reduced its operating income estimates for 2026-2027 by about 2% to account for the headwinds facing the group. Despite these downward adjustments, BofA Securities still keeps the stock among its strongest convictions in Europe and reiterates its buy recommendation.
Underperformance Relative to Euro Stoxx 50
According to BofA Securities’ note, the Saint-Gobain stock has underperformed the Euro Stoxx 50 index by more than 20% over the past six months. The bank attributes this trend to negative sentiment due to political uncertainties in France and fears of a slowdown in the American residential roofing market. These factors have impacted investors' perception of the group, despite its solid fundamentals.
Still One of the Sector's Undervalued Stocks
BofA Securities believes that Saint-Gobain remains one of the last undervalued stocks in the sector according to its valuation criteria, the note states. This perceived undervaluation justifies, according to the bank, keeping the stock among its top investment convictions for the year 2026, despite the downward revisions in earnings estimates and the unfavorable market context that has affected the group’s recent stock performance.
