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Jan 14 2022, 07:00 GMT
Building Materials
Themes, trends and top picks for 2022 and beyond
- Sectors : Building Materials
- Companies : Travis Perkins plc | Breedon Group | Forterra plc | Marshalls | Howden Joinery | Saint-Gobain Group | Ibstock plc | Grafton Group | Holcim | Tyman | Genuit Group | Volution | Heidelberg Materials | Kingspan Group | Buzzi Unicem | CRH
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 |
| Heidelberg Materials | 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.
