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....
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...
Near-term challenges to negotiate but UK brick sector has the flexibility to prosper
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...
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...
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...
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...
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...
Global markets rally in August despite US rate hike uncertainty
Global equity markets continued their advance with the MSCI AC World Index up 0.5% following a 4.0% gain in July. It is now up 2.9% year-to-date. The MSCI World Developed index rose 0.2%,...
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...
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...