Grafton Group

Model update – another earnings upgrade of substance

  • Sectors : Builders Merchants
  • Companies : Grafton Group

Ratings and price correct at time of issue.

  • Grafton Group

    Closing Price: 848p

  • RATING 07/10/20

  • PREVIOUS RATING 21/05/20



We are increasing our 2020 EPS forecast by 26% and next year’s estimate by 5%. The latter (56p) means the latest forecast is 24% higher than what was envisaged back in May. It is clear some of Graton’s leading banners – such as Selco and Woodie’s – are emerging from the pandemic with an enhanced proposition and competitive position. This is an endorsement of Grafton’s longer-term prospects as is the burgeoning net cash build. The stock has done well recently – up over 20% in the past month – but we see no reason why it cannot kick on beyond the 900p level.

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Nov 20 2020, 06:30 GMT