DAVY VIEW

Rockwool will be happy to leave 2019 behind. Management had to lower its revenue growth expectation during the year while the share price performance significantly lagged its peers. That said, the group finished the year on a positive note with operating profit growth of 9% beating expectations. Nonetheless Kingspan’s results on February 21st should highlight that the operational gap in insulation between the two widened further last year. So too has the ratings differential, with Kingspan now at its biggest ever P/E multiple premium over Rockwool.