DAVY VIEW

Saint-Gobain announced a solid Q3 sales result in what remain testing operating conditions. Once again, the group made good progress in construction chemicals and in Asia, while a further highlight was the acceleration in selling prices in what has become a more inflationary environment. EBITDA margin guidance for the year is unchanged, and our initial take is that forecast changes are likely to be relatively modest. In the current environment, this amounts to a decent outcome and (as seemingly ever) the stock screens well from a valuation perspective.