Nov 25 2022
Industrials
Recent Research
Kingspan Group, 2023 slowly taking shape
Nov 16 2022
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Breedon Group
Solid update with positive incrementals
Breedon’s trading update is not vastly different from expectations (pricing remains key driver, 2022 expectations reaffirmed), but the incremental news is positive. Notably,...
Forterra plc
Full year results to be in line with expectations; new CEO announced
Forterra remains on track to deliver a significant improvement in earnings this year, supported by a number of hefty brick selling price increases. However, our forecasts for 2023 are...
CRH
Demonstrating strong resilience; guidance confirmed
CRH’s continued outperformance – 9% like-for-like (LFL) EBITDA growth year-to-date with margins up on 2021 – adds further authority to our view that its integrated solutions offering...
Building materials
Euroconstruct forecasts suggest dull near-term outlook for European construction
The latest Euroconstruct forecasts for European construction activity are consistent with recent industry indicator trends and corporate commentary. They signal a modest upgrade to...
Tyman
2022 expectations confirmed, although demand could weigh on 2023
While Tyman can and is pulling self-help levers (implementing cost savings, gaining market share, focussing on gross margin), it is ultimately subject to backdrop conditions. As such, we...
Kingspan Group
2023 slowly taking shape
The positive reaction to Kingspan’s recent trading update is instructive. We believe it highlights the “credit in the bank” the group has accumulated given investors’ willingness to look...
UK housebuilders
Trading updates point to bleak 2023 market conditions
Recent trading updates in the sector have reinforced our view that trading will continue to be difficult for homebuilders well into 2023. Our headline assumptions for the market (volume...
Irish banks and housebuilders
Easing of mortgage rules supportive of outperformance
The Central Bank of Ireland’s (CBI) easing of mortgage rules is another demand-side response to a supply-side issue. It will have an inflationary impact but should not stretch credit...
Redrow plc
Guidance broadly in line with expectations
The deterioration in sales rates, which Redrow has seen year-to-date, is not surprising relative to reports we have seen in the rest of the sector. Guidance for the current year is...
Grafton Group
Trading performance still solid as fresh buyback highlights capital optionality
Grafton’s diversity should prove a real strength as many of its end-markets become more challenging. The diversity is evident in the spread of performance since the start of July to...
