Davy Research

Fresh thinking on the European

industrials and consumer sectors

Current themes at Davy Research

Industrials

Maturing Irish real estate cycle continues to offer favourable backdrop for listed sector

The Irish real estate market generated total returns of 36.3% in the year to end-Q1 2015, among the highest in the MSCI index universe. The sharp turnaround has been led by offices...

May 13 2015| Ray Crowley , Flor O'Donoghue | Sector Report | 31 pages

Enters the next stage of evolution with a 1,474-unit portfolio yielding 5% and over €300m of capacity to fund expansion; initiating coverage with 'Outperform' rating

We formally initiate coverage on Irish Residential Properties REIT (IRES) with an ‘Outperform’ rating. IRES offers exposure to a new asset class – the Irish multi-family sector – at an...

May 8 2015| Ray Crowley , Flor O'Donoghue , Conall Mac Coille | Company Report | 40 pages
Resources & environment

Round and round the cycle; initiating coverage with a 'Neutral' rating

With decent assets and a solid financial structure, Circle Oil is well positioned to continue to benefit from the recent modest recovery in sentiment towards smaller E&P equities. This will...

May 7 2015| Job Langbroek | Company Report | 12 pages
Markets & indices

Greece crisis dominates market sentiment and leaves June with heavy losses

The MSCI AC World Index fell 3.0% as the prospect of a Greek default and exit from the single currency dominated sentiment. Not surprisingly, the largest losses were incurred in Europe...

July 2 2015| Jim O'Neill , Laura Chambers , Jenny Campbell , Colin Richardson | Monthly Market Monitor | 31 pages

Monthly gains pared following Fed comments

The MSCI AC World Index advanced 1.3% in April, erasing the 0.6% loss of the previous month. Gains were pared substantially over the final two days of the month – the index fell 1.6% –...

May 1 2015| Jim O'Neill , Jenny Campbell , Laura Chambers , Colin Richardson | Monthly Market Monitor | 31 pages
Financials

Challenged bank turns challenger

Permanent tsb (PTSB) has quickly transformed into an attractive investment proposition as a focussed domestic retail bank that will benefit from a consolidated market and a strongly...

June 8 2015| Emer Lang , Stephen Lyons , Diarmaid Sheridan , Conall Mac Coille | Company Report | 79 pages

SVR headlines overshadow continued asset quality progress

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Intense political pressure on standard variable rates (SVRs) has proved the dominant theme this month, overshadowing banks’ robust Q1 updates. Asset quality metrics continue to...

May 28 2015| Emer Lang , Stephen Lyons , Diarmaid Sheridan | Davy Banks Monthly | 20 pages

2014 results previews

Ireland’s three domestic banks are at very different stages of recovery, but we expect that annual results will progress the ambitions of each. The focus on Bank of Ireland now...

February 23 2015| Stephen Lyons , Emer Lang , Diarmaid Sheridan | Davy Banks Monthly | 28 pages
Transport & logistics

Initiating coverage with 'Outperform' rating; early stage growth with over 50% upside

We expand our coverage of the aviation value chain to include the aircraft leasing space, initiating on Avolon. Our positive investment thesis centres on attractive industry dynamics, an...

June 23 2015| Stephen Furlong , Ross Harvey , Allan Smylie CFA | Company Report | 68 pages
Davy Research

MyHome Property Report, Q2 2015: House price inflation continues to moderate

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MyHome asking price data point to a further slowdown in house price inflation in H2 2015. In Q2, asking prices on newly listed properties rose by 1.1% nationally and by 0.8% in Dublin, both...

June 30 2015| Conall Mac Coille | Irish Economy | 9 pages