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Jul 7 2021, 11:00 IST/BST
Building Materials
Thoughts on Q2/H1 trading
- Sectors : Building Materials
- Companies : Breedon Group | Saint-Gobain Group | Buzzi Unicem | Tyman | Heidelberg Materials | Kingspan Group | CRH | Holcim
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| Breedon Group | OUTPERFORM | 22/11/19 | Neutral | 25/10/17 | 109p |
| Buzzi Unicem | OUTPERFORM | 04/04/16 | Neutral | 05/08/15 | 2188c |
| CRH | OUTPERFORM | 23/05/12 | Neutral | 12/01/12 | 4963c |
| Heidelberg Materials | NEUTRAL | 04/02/20 | Outperform | 16/06/17 | 7222c |
| Holcim | OUTPERFORM | 20/04/20 | Neutral | 09/01/19 | 5382chf |
| Kingspan Group | OUTPERFORM | 12/05/11 | Neutral | 30/06/09 | 8366c |
| Saint-Gobain Group | OUTPERFORM | 29/01/21 | Neutral | 02/11/20 | 5624c |
| Tyman | OUTPERFORM | 24/03/21 | N/A | N/A | 448p |
DAVY VIEW
A steady stream of positive ad hoc statements highlights the strength of Q2 trading in the building materials sector. Momentum has continued to build in most markets despite supply chain disruption and steep cost inflation. Robust pricing appears to be fully compensating, and the much-feared margin squeeze has not materialised. Whether that can be sustained into H2 and 2022 remains to be seen, but for now that battle is being won and the risk to sector earnings remains firmly to the upside in our view.
