Building products

Challenges set to last into 2024


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Forterra plc NEUTRAL 19/08/16 N/A N/A 169p
Genuit Group NEUTRAL 05/11/21 N/A N/A 331p
Grafton Group OUTPERFORM 07/10/20 Neutral 21/05/20 914p
Howden Joinery OUTPERFORM 31/03/22 Neutral 26/09/19 749p
Ibstock plc NEUTRAL 04/08/17 Outperform 19/08/16 147p
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 7226c
Marshalls NEUTRAL 10/11/21 N/A N/A 271p
Stelrad Group plc OUTPERFORM 11/05/23 N/A N/A 112p
Travis Perkins plc NEUTRAL 28/05/20 Underperform 01/07/16 832p
Tyman OUTPERFORM 24/03/21 N/A N/A 303p
Volution OUTPERFORM 31/03/21 N/A N/A 360p


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.

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Sep 19 2023, 06:45 IST/BST