Construction and Housebuilding

Key stock picks and sector themes for 2018


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Abbey OUTPERFORM 30/06/09 N/A N/A 1460c
Barratt Developments plc NEUTRAL 24/03/14 Outperform 10/09/13 65780p
Berkeley Group UNDERPERFORM 10/09/13 Under Review 21/05/13 422500p
Bovis Homes plc OUTPERFORM 10/09/13 Under Review 21/05/13 119000p
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 2386c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 3107c
Geberit NEUTRAL 08/05/14 Underperform 09/11/12 43670
Grafton Group OUTPERFORM 15/12/15 Neutral 07/09/15 80500p
HeidelbergCement AG OUTPERFORM 16/06/17 Neutral 05/02/14 9250c
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 3888c
LafargeHolcim UNDERPERFORM 17/11/15 Neutral 29/07/15 5800
Persimmon plc UNDERPERFORM 10/09/13 Under Review 21/05/13 277800p
Redrow plc NEUTRAL 10/09/13 Under Review 21/05/13 66450p
Saint-Gobain Group OUTPERFORM 07/09/15 Neutral 03/09/14 4777c
SIG plc NEUTRAL 01/07/16 Outperform 15/12/15 17450p
Taylor Wimpey plc OUTPERFORM 10/09/13 Under Review 21/05/13 21120p
Travis Perkins plc UNDERPERFORM 01/07/16 Neutral 20/10/14 158750p
Wienerberger NEUTRAL 09/01/17 Outperform 17/02/16 2082c
Howden Joinery OUTPERFORM 29/01/15 N/A N/A 46710p
Kingfisher OUTPERFORM 02/10/17 Neutral 01/07/16 33960p
Cairn Homes OUTPERFORM 26/08/15 N/A N/A 192c
Ibstock plc NEUTRAL 04/08/17 Outperform 19/08/16 26500p
Forterra plc NEUTRAL 19/08/16 N/A N/A 29550p
Breedon Group NEUTRAL 25/10/17 Outperform 06/03/17 8580p
Glenveagh Properties OUTPERFORM 10/11/17 N/A N/A 119c
Ferguson NEUTRAL 10/11/17 N/A N/A 7365p


This report examines the themes we expect to dominate the European building materials and construction sector in 2018. Our stock-picking criteria remain focused on quality (cash generation, proven management, earnings momentum) and company-specific opportunities (strategic initiatives, structural growth). Our key picks include Kingspan, CRH, Kingfisher and Glenveagh Properties.

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Jan 9 2018, 06:30 GMT