DAVY VIEW

Yet again we have raised our earnings forecasts for CRH after impressive results. The group continues to exceed expectations, driven by efficiency gains and management’s focus on the integrated building solutions model. Meanwhile, cash is king and CRH is generating lots of it. That means the group can pursue an extensive capital allocation strategy to both grow the business (capex, acquisitions) and return cash to shareholders (dividends, buybacks). Layer on a major multi-year increase in funding for US infrastructure and the stock is in a great place. We reiterate our ‘Outperform rating’ and increase our 12-month price target to €51.