Download full report with analyst certification and important disclosures
Nov 8 2021, 12:05 GMT
We have formally adjusted Kingspan forecasts following the group’s trading update. The changes are consistent with what was previously indicated, with trading profit now forecast at €750m for this year and next (upgrades of 9% and 7% respectively). We would not be concerned at the current prognosis of flat profitability next year. Caution is common-place at this time of year and Kingspan is still tracking at a trading profit five-year annual average growth rate of 15% (to end-2022). Recent events suggest the structural tailwinds that support the investment case are, if anything, amplifying. We believe the stock will continue to outperform and it remains a top pick.