Davy Research

Fresh thinking on the European

industrials and consumer sectors

Current themes at Davy Research

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
Industrials

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

Lightside building materials sector at start of difficult journey

The outcome of the Brexit referendum has created huge uncertainty for the European building materials sector. The full implications will not become apparent for some time. However, we...

Jul 1 2016| Michael Mitchell , Flor O'Donoghue | Sector Report | 41 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
Leisure

Initiating coverage with an 'Outperform' rating; 2020 milestones to drive earnings growth and deliver shareholder value

Whitbread is a high-quality business with two market-leading brands in Costa coffee and Premier Inn hotels. In this initiation note, we focus on the group’s delivery of its 2016 targets...

Jun 1 2016| Robert Stokes CFA , David Jennings | Company Report | 50 pages
Markets & indices

Global markets fall sharply in reaction to Brexit decision before recovering; MSCI AC world index falls 1.2% in June

Financial markets were initially stunned by the outcome of the UK referendum and fell sharply over the two trading days following the result. The MSCI AC world index declined 5.6% during...

Jul 1 2016| Jim O'Neill , Laura Chambers , Jenny Campbell , Colin Richardson | Monthly Market Monitor | 22 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