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Sep 19 2023, 06:45 IST/BST
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|Stelrad Group plc||OUTPERFORM||11/05/23||N/A||N/A||112p|
|Travis Perkins plc||NEUTRAL||28/05/20||Underperform||01/07/16||832p|
Recent results revealed that 2023 is proving every bit as challenging as was feared for our lightside building materials coverage list. Moreover, the latest signals suggest any rebound in 2024 will be more tepid than previously hoped, at least in the first half. Not surprisingly in this environment, the higher quality, differentiated businesses have fared better. The sector continues to screen well from a valuation perspective, but this catalyst is diluted while earnings risk is tilted to the downside. At the start of the year we gravitated towards Kingspan and Howdens and this remains the case. Volution is also interesting as it has lagged somewhat despite impressive ongoing operational delivery.