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Sep 13 2021, 08:05 IST/BST
Building Materials
Davy Industrials Conference – roadshow feedback notes
- Sectors : Building Materials
- Companies : Saint-Gobain Group | Kingspan Group | Tyman | Heidelberg Materials | CRH | Holcim
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| CRH | OUTPERFORM | 23/05/12 | Neutral | 12/01/12 | 5088c |
| Heidelberg Materials | NEUTRAL | 04/02/20 | Outperform | 16/06/17 | 6870c |
| Holcim | OUTPERFORM | 20/04/20 | Neutral | 09/01/19 | 4776chf |
| Kingspan Group | OUTPERFORM | 12/05/11 | Neutral | 30/06/09 | 9600c |
| Saint-Gobain Group | OUTPERFORM | 29/01/21 | Neutral | 02/11/20 | 6117c |
| Tyman | OUTPERFORM | 24/03/21 | N/A | N/A | 441p |
DAVY VIEW
Davy hosted its 13th Annual Industrials Conference last week, featuring many of the key names in the European buildings materials sector. These included CRH, Holcim, Kingspan, HeidelbergCement, Saint-Gobain and Tyman. The key take-outs were: (1) demand trends remain strong with backlogs in good shape, although poor weather has been unhelpful in the US; (2) cost inflation and supply chain disruption remain a challenge, albeit manageable for the moment; (3) pricing remains robust, with second and third increases pushed through in many markets and companies laying the groundwork for further increases in 2022; (4) deal risk appetite is improving and with balance sheets in good order, companies plan to grow but not at any price; (5) sustainability remains key, with management keen to reinforce commitments to achieving ambitious carbon reduction targets.
