Davy Research

Fresh thinking on the European

industrials and consumer sectors

Current themes at Davy Research

Industrials

Attractive valuation might not be enough until uncertainty lifts

We are initiating coverage of Forterra with a ‘Neutral’ recommendation. The near-term outlook for a business that is fully exposed to the UK is clearly uncertain and visibility is limited....

Aug 19 2016| Flor O'Donoghue , Michael Mitchell | Company Report | 44 pages

Can build an attractive track record as an independent plc

We are initiating coverage of Ibstock with an ‘Outperform’ recommendation. Ibstock offers good quality exposure to what remains a structurally attractive UK brick market despite...

Aug 19 2016| Flor O'Donoghue , Michael Mitchell | Company Report | 58 pages

Near-term challenges to negotiate but UK brick sector has the flexibility to prosper

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The likely downturn in construction activity has put the remarkable turnaround of the UK brick industry at risk. However, our analysis of the sector suggests that it has the...

Aug 19 2016| Flor O'Donoghue , Michael Mitchell | Sector Report | 46 pages

Limited Brexit risk to European packaging names; free cashflow generation provides a strong underpin for valuation

Since the result of the UK referendum became known, the European Paper & Forest Products sector is down almost 4%. Within this, the share price of Smurfit Kappa Group (SKG) has...

Jul 5 2016| Barry Dixon | Sector Report | 9 pages
Food, beverage & pharma

Tracking regional balance in Taste & Nutrition; H1 results preview

Regional balance has supported consistent revenue and earnings delivery in the specialist ingredient/nutrition sector in recent years. Kerry’s investment commitment in this regard is...

Jul 8 2016| Jack Gorman | Company Report | 8 pages

Mid-year review: Absolute returns to moderate; top picks for H2 2016

We believe we are exiting the most benign period for investing in the European food/beverage and ingredients space. As such, we expect absolute returns to moderate. In a break with...

Jun 22 2016| Cathal Kenny , Jack Gorman , Declan Morrissey | Sector Report | 35 pages
Transport & logistics

High-growth and high-margin but not without risk

We are adding Wizz Air to our European airlines coverage with a ‘Neutral’ rating. We like the group’s market and strategic positioning and believe that its structural growth drivers and...

Jun 21 2016| Ross Harvey , Stephen Furlong , Allan Smylie CFA | Company Report | 25 pages
Markets & indices

Equity markets enjoy strong gains in July; Brexit losses all but recovered

The recovery experienced following the two-day Brexit slump continued through July with most benchmarks now higher than before the referendum result. The MSCI AC World Index climbed a...

Aug 2 2016| Jim O'Neill , Laura Chambers , Jenny Campbell , Colin Richardson | Monthly Market Monitor | 21 pages
Davy Research

Irish census throws up some surprises

In this issue of Davy Economics Monthly, we examine the Irish census data for 2016. The provisional results show that the population grew at a faster pace than expected due to a much...

Jul 22 2016| David McNamara , Conall Mac Coille | Davy Economics Monthly | 7 pages

MyHome Property Report, Q2 2016: a hot summer for the Irish housing market

MyHome asking prices rose by 5% in Q2 2016 and by 3.2% in Dublin, pointing to sharp price gains through the summer months. Moreover, the number of homes for sale is still down 6.7% on...

Jul 4 2016| Conall Mac Coille | Irish Economy | 10 pages