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Nov 8 2021, 08:30 GMT
Ratings and price correct at time of issue
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The US House of Representatives finally passed the Infrastructure Investment and Jobs Act (IIJA) on November 5th. The IIJA includes a $300bn highway bill (replacing the FAST Act), with another $47bn in additional funding on top. In total, it amounts to a c.44% increase in Federal highway and bridge spending over the next five years. All our stocks have US exposure and will gain to some degree from the bill. However, CRH is the clearest beneficiary by some distance given its leading market positions, not just in aggregates, asphalt and paving but also in its growing infrastructure-facing products businesses. The shares have done well year-to-date, but the opportunity remains. The stock is not expensive, trading on a next 12-month P/E multiple of 15.4x and EV/EBITDA of 8.1x.