DAVY VIEW

H1 2019 was a relatively quiet one for Kingspan but interim results (August 23rd) should reveal further impressive progress. We expect another double-digit advance in earnings, which would leave the group well placed for 2019 overall even though near-term end-market headwinds have amplified. Having approached the €50 level in early July, the stock has since fallen almost 15% in recent weeks. This has pulled back the group’s valuation to just over its five-year average while the structural investment case remains as potent as ever.