DAVY VIEW

Ibstock is hoping that the journey towards meeting its medium-term earnings potential begins in 2025. Admittedly, crystallising this potential is taking much longer than expected, hindered by a soft UK economy and housing market. This has translated into a sluggish share price performance. The stock has bounced off recent lows but is little changed year to date and remains around 15% off where it traded last November. We like the investment thesis of a well-run business offering operationally leveraged upside to the cyclical and secular upside in the UK new housing market, although we acknowledge that patience is clearly required.