Industrials

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European building materials and construction

Minor cut to Euroconstruct forecasts for 2019/2020

In its semi-annual update, Euroconstruct has revised its activity forecasts slightly lower for both 2019 and 2020. Overall, European construction output is now expected to grow by 1.9%...

CRH

A year on the road to 300bps

It is almost a year to the day since CRH’s medium-term strategic update. That revealed ambitious margin and cash targets, a new divisional structure and a review of the Distribution...

Ferguson

Mixed Q3 markets but guidance should be intact

Ferguson had a tough Q2 with additional overhead weighing on margins. Management reacted quickly and cut headcount, but the damage was done and FY guidance was cut. The share price...

Paper & packaging

Reducing forecasts on more cautious pricing; cash flow drives long-term value

While pricing for European containerboard and corrugated may be under pressure in the short term, the industry remains highly cash generative. This strong cash flow, combined with...

Cairn Homes

Yield! Significant shareholder returns coming in the medium term

Cairn Homes is, in our view, likely to return significant amounts of capital to shareholders in the coming years. We forecast a yield that is over 9% on average in the next three years,...

Kingfisher

No respite as freshening headwinds in France prompt another cut in forecasts

The challenges facing Kingfisher are, if anything, becoming more intense. With evidence of increasing headwinds in France, we are cutting forecasts for the recently ended (January 2019)...

Smurfit Kappa Group

Reducing forecasts to reflect more cautious pricing; cashflow remains robust

Smurfit Kappa Group (SKG) reported record profits, cashflow and leverage in its 2018 results. However, recent weakness in European containerboard prices is likely to result in lower...

Kingspan Group

Well positioned to close out a decade of real progress

Kingspan remains a stand-out and a top pick of ours in the European building materials sector. Results for 2018, due on February 22nd, will confirm an eighth consecutive year of...

Davy Conviction List

Q4 2018 a period to forget; sticking with our core names; adding Glenveagh Properties and ICG

While the Davy Research Conviction List had a disappointing final quarter in 2018, we believe that all the names on the list still merit inclusion and are significantly oversold. We are...

Construction Year-End

Darkest before the dawn? Key stock picks for 2019

2018 was a year to forget as the European building materials sector returned its weakest performance in seven years. Sentiment towards the sector has rarely been worse. We are more...