Industrials

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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...

Year-end Document

Ireland’s call: investment opportunities in 2019

The 21% decline in the Irish equity market in 2018 was at odds with on-going strength in the economy. With economic growth expected to exceed 5% in 2019 (subject to an on-going fudge...

European cement

The falling knife

Q3 results promise little by way of positive surprise from the cement stocks. Making numbers and maintaining guidance will be a good day’s work in this sector. In our view, the balance...

Glenveagh Properties

A closer look at Glenveagh Living; potential returns drive our price target higher

To date, we have not allowed for any superior returns to be generated from Glenveagh Living. Our analysis of the pipeline sites suggests that the potential uplift to returns is...