Davy Morning Equity Briefing
Nov 09, 2026
Kingspan Group
Remains on track for a significant acceleration in profit growth
Ahead of its US Capital Markets Day (CMD) on November 10th, Kingspan has reported an impressive pick-up in revenue growth in Q3 and has confirmed existing trading profit expectations for this year and next. Management’s confidence in the group’s outlook is supported by a tangibly strong order backlog and pipeline for both divisions. We view the somewhat recent sluggishness in the share price as an excellent opportunity. Kingspan is trading on a 2027 P/E multiple of <16x based on our forecasts. This is well below its long-term average and not consistent with the prospects for a business that will deliver year-on-year earnings growth of 20%+ in H2 2026 and 2027.
Economics weekly
Strong payrolls and inflation imply more US rate hikes ahead
The US economy is growing strongly, and a higher Federal Funds Rate is justified by a stronger labour market and above-target inflation. For the UK, an increase to Bank Rate last month was accompanied by a very hawkish revision to inflation projections by the Bank of England (BoE). We think this looks overdone, although the UK economy has performed stronger than expected. This week will also see updated figures for Ireland’s infrastructure gap as of 2025 and employee payrolls for September.
