DAVY VIEW

Breedon continues to execute well, building a more diversified and resilient business that has held up well versus other construction related, UK focused names (EBIT CAGR >17% since 2020). The stock, now at a three-year low, has typically signalled an attractive buying opportunity and we can see the appeal. For now though, a UK recovery that keeps slipping leaves us comfortable waiting for a clearer catalyst. We reiterate our ‘Neutral’ rating and set our price target at 355p per share.