DAVY VIEW

With sector peers pointing to strong trading through Q2, it makes sense to lift our H1 2021 forecasts for CRH. We increase our H1 EBITDA estimate by 8% to €1.92bn as we believe strong demand and pricing trends are more than offsetting cost inflation. Our H2 forecasts remain largely unchanged given the cost headwind and difficult comparison base. Meanwhile, the group remains in an enviable financial position allowing it to continue buying back shares and pursue bolt-on acquisitions. That financial muscle, combined with strong operational execution and the improving long-term outlook (US Infrastructure), underpins our positive stock view. The shares remain attractive, trading on a next 12-month P/E of 16.5x and EV/EBITDA of 8.6x.