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Mar 1 2021, 06:30 GMT
Headline forecast adjustments for Kingspan are relatively modest: for example, we increase our 2021 trading profit estimate by 2%. But a great start to the year, a soft comparator for much of Q2, and hints of a pick-up in deal flow suggest there could be more to come. We believe governance and related issues have been dealt with credibly; the focus can now return to the many attractions of the investment case. The rating pull-back makes the valuation interesting, especially given the upside risk to forecasts. Our view is that the stock can start outperforming once again.