DAVY VIEW

We expect a robust update when CRH reports full year results on March 4th. Despite the impact of the pandemic, organic profits will likely have grown in 2020 with debt metrics reduced to multi-year lows. That sets CRH up strongly for 2021 with significant firepower available for accretive acquisitions and/or increased shareholder returns. Outlook comments are likely to be guarded given limited visibility and the ongoing impact of the pandemic. However, we believe CRH will see it out better than most given its financial muscle and exposure to infrastructure end-markets. We reiterate our ‘Outperform’ stock rating and €42 price target.