Construction and Housebuilding

Minor cut to Euroconstruct forecasts for 2019/2020

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Abbey OUTPERFORM 30/06/09 N/A N/A 1450c
Barratt Developments plc NEUTRAL 24/03/14 Outperform 10/09/13 565p
Bellway plc OUTPERFORM 24/03/14 Neutral 10/09/13 2754p
Berkeley Group UNDERPERFORM 10/09/13 Under Review 21/05/13 3533p
Bovis Homes plc OUTPERFORM 10/09/13 Under Review 21/05/13 1022p
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 1782c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 2821c
Geberit NEUTRAL 08/05/14 Underperform 09/11/12 45950chf
Grafton Group OUTPERFORM 15/12/15 Neutral 07/09/15 890p
HeidelbergCement AG OUTPERFORM 16/06/17 Neutral 05/02/14 6870c
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 4620c
LafargeHolcim NEUTRAL 09/01/19 Underperform 17/11/15 4795chf
Persimmon plc UNDERPERFORM 10/09/13 Under Review 21/05/13 1937p
Redrow plc NEUTRAL 10/09/13 Under Review 21/05/13 547p
Saint-Gobain Group NEUTRAL 09/01/19 Outperform 07/09/15 3318c
SIG plc NEUTRAL 01/07/16 Outperform 15/12/15 135p
Taylor Wimpey plc OUTPERFORM 10/09/13 Under Review 21/05/13 157p
Travis Perkins plc UNDERPERFORM 01/07/16 Neutral 20/10/14 1325p
Wienerberger OUTPERFORM 09/05/18 Neutral 09/01/17 2088c
Howden Joinery OUTPERFORM 29/01/15 N/A N/A 505p
Kingfisher NEUTRAL 20/08/18 Outperform 02/10/17 210p
Cairn Homes OUTPERFORM 26/08/15 N/A N/A 120c
Ibstock plc NEUTRAL 04/08/17 Outperform 19/08/16 247p
Forterra plc NEUTRAL 19/08/16 N/A N/A 289p
Breedon Group NEUTRAL 25/10/17 Outperform 06/03/17 69.5p
Glenveagh Properties OUTPERFORM 10/11/17 N/A N/A 71.0c
Ferguson NEUTRAL 10/11/17 N/A N/A 5576.0p

DAVY VIEW

In its semi-annual update, Euroconstruct has revised its activity forecasts slightly lower for both 2019 and 2020. Overall, European construction output is now expected to grow by 1.9% in 2019 (previously: 2%) and 1.5% in 2020 (previously: 1.6%). Infrastructure is forecast to do the heavy lifting with growth of 4.2% expected in 2019. New residential expectations have improved with growth of 1.7% (previously: 1.1%) anticipated, albeit largely at the expense of residential RMI where growth forecasts have declined to 0.8% (previously: 1.2%). Eastern Europe continues to lead the way with construction output growth of 7.4% indicated in 2019. Forecasts were revised higher for Ireland, Belgium and Spain. Not surprisingly, expectations for the UK have reduced again.

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Jun 18 2019, 12:35 IST/BST

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