DAVY VIEW

Having advanced over 75% in the past 12 months, there is the temptation to call time on the run in the Grafton share price. But we think it is still too early. Latest guidance appears very cautious, suggesting the upgrade cycle has further to go. Impressive strategic delivery leaves Grafton with an attractive portfolio of high margin, differentiated assets along with very considerable financial capacity for further expansion. Our analysis points to a price target of 1582p, giving a further 17% upside.