DAVY VIEW

Wienerberger’s (WIE) Q1 results are largely uneventful given it had already disclosed headline results and removed full year guidance. The former indicated that the group had a satisfactory start to the year; the latter came as no surprise. We have yet to reflect the impact of COVID-19 in our forecasts but would view Wienerberger’s freshly outlined scenario EBITDA range for this year of €440-480m as credible. This range is circa 28% below what was guided at the start of the year and underlines the effect the pandemic will have on the financial result. Even on such a likely sharp reduction in earnings forecasts, Wienerberger looks cheap, but better visibility on where profitability will land is probably needed for the stock to rebound