DAVY VIEW

We have upgraded our CRH forecasts following the group’s recent trading update. We increase our FY22 EBITDA and EPS estimates by c.4% and 6% respectively. The group delivered a strong performance in the third quarter and very clearly outperformed its peer group in doing so. Margins expanded despite significant cost headwinds as the group’s differentiated model came to the fore. That integrated solutions offering, combined with the group’s financial muscle, has the potential to drive a significant re-rating of the shares. We reiterate our ‘Outperform’ recommendation and raise our price target to €56.