Davy Research



Joining an exclusive club; initiating with an ‘Outperform’ rating

Glenveagh is at the start of an exciting journey. It is now one of a very small group of housebuilders with the financial and operational capacity to build much-needed homes at scale in...

Nov 10 2017 | Colin Sheridan CFA , Michael Mitchell | Company Report | 34 pages

Q3 will mark a turn in earnings, how much is the question

HeidelbergCement’s (HEI) Q3 results will mark a turning point in profitability with the group returning to organic EBITDA growth after four poor quarters. With weather issues well...

Nov 6 2017 | Robert Gardiner | Company Report | 9 pages

Best positioned to own Ash Grove; Summit Materials financially stretched

CRH’s bid for Ash Grove makes sense from an operational, strategic and financial perspective. It is Ash Grove’s largest customer, is a global player in cement and has a pristine balance...

Oct 10 2017 | Robert Gardiner , Barry Dixon | Company Report | 14 pages

Compelling valuation and cash returns story; upgrade to ‘Outperform’

We are upgrading Kingfisher to ‘Outperform’. The recent slide in the share price reflects the operational challenges facing the business and a lack of belief in the ONE Kingfisher...

Oct 2 2017 | Flor O'Donoghue , Michael Mitchell | Company Report | 21 pages

Chemicals not preventing a further compounding of earnings

Sharply increasing input prices (notably chemicals) and stiffening foreign exchange headwinds have failed to derail Kingspan. Yet again, we have increased our earnings forecast (this...

Aug 29 2017 | Flor O'Donoghue , Michael Mitchell | Company Report | 19 pages

Jumping over a high hurdle despite considerable input pressures

Forecast trading profit growth of 2% year-on-year for H1 is well below what Kingspan has achieved in recent times. However, this would still amount to an impressive outcome given a very...

Aug 15 2017 | Michael Mitchell , Flor O'Donoghue | Company Report | 8 pages

Results from Smurfit Kappa Group and Mondi likely to confirm demand and pricing strength

Smurfit Kappa Group and Mondi Group will report Q2/interim results in the first week of August. While profits for both companies are expected to be lower year-on-year (yoy), the...

Jul 26 2017 | Barry Dixon , Colin Sheridan CFA | Sector Report | 10 pages

Building up volume, cash and value; stock could be worth up to €1.82 in our scenarios

While Cairn Homes continues its substantial ramp-up of volumes into a recovering Irish housing market, we reflect on what the company are likely to do with a significant cash position...

Jun 27 2017 | Colin Sheridan CFA | Company Report | 12 pages

Ireland: Merchanting margins and country RONA can approach peak once again

Grafton’s current Irish prospects are frequently measured by (i) the pace of like-for-like (LFL) revenue growth and (ii) profitability compared to previous peak...

Jun 19 2017 | Michael Mitchell , Flor O'Donoghue | Company Report | 22 pages

Cash in as cement prices turn in Europe – upgrade to 'Outperform'

While not quite a fallen star, the halo has certainly slipped at HeidelbergCement (HEI). Two disappointing quarters have seen the stock struggle as doubts persist around synergies and...

Jun 16 2017 | Robert Gardiner | Company Report | 40 pages

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