DAVY VIEW

Kingspan continues to impress. Our revised 2021 trading profit forecast of €500m is, remarkably, within 5% of what had been expected prior to COVID-19. This operating resilience has been accompanied by phenomenal cash management with free cash flow this year likely to exceed €500m. This leaves Kingspan with more scope than ever to invest and expand. Our 2021 forecasts are conservative; there is clear scope for upwards revisions if trading conditions are in any way reasonable. The stock may pause somewhat after its recent gains, but the longer-term story remains compelling.