Building Materials

Themes, trends and top picks for 2022 and beyond

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Breedon Group OUTPERFORM 22/11/19 Neutral 25/10/17 91.6p
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 1957c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 5349c
Forterra plc NEUTRAL 19/08/16 N/A N/A 268p
Genuit Group NEUTRAL 05/11/21 N/A N/A 610p
Grafton Group OUTPERFORM 07/10/20 Neutral 21/05/20 1205p
HeidelbergCement AG NEUTRAL 04/02/20 Outperform 16/06/17 6466c
Holcim NEUTRAL 14/01/22 Outperform 20/04/20 5186chf
Howden Joinery NEUTRAL 26/09/19 Outperform 29/01/15 887p
Ibstock plc NEUTRAL 04/08/17 Outperform 19/08/16 205p
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 9930c
Marshalls NEUTRAL 10/11/21 N/A N/A 679p
Saint-Gobain Group OUTPERFORM 29/01/21 Neutral 02/11/20 6650c
Travis Perkins plc NEUTRAL 28/05/20 Underperform 01/07/16 1626p
Tyman OUTPERFORM 24/03/21 N/A N/A 401p
Volution OUTPERFORM 31/03/21 N/A N/A 510p

DAVY VIEW

2021 was a good year to own the construction sector as the E300 Construction & Building Materials index gained 35%. Our view for 2022 is to “stick with the winners”. We have greatest conviction on those high-quality businesses with tried and trusted business models and good pricing power. Cash generation, financial discipline and credible sustainability strategies are also increasingly important investment parameters. In this regard, companies such as CRH and Kingspan stand out. We also remain positive on Grafton, Saint-Gobain and Volution in a sector-relative context. Names we believe could become increasingly interesting include Buzzi Unicem, Genuit, Ibstock and Tyman.

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Jan 14 2022, 07:00 GMT

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