DAVY VIEW

Forecast upgrades are quite uncommon at present in the wider construction and building materials sector. Hence our 4% upgrade to the underlying operating profit forecast for the year to end-July sets Volution apart as a positive outlier. The upgrade, following very impressive interim results, confirms the group is in great shape. We remain optimistic about Volution’s opportunity and increase our near-term price target to 419p. Further upside can be generated by additional earnings upgrades, both organic and from accretive M&A.