Davy Morning Equity Briefing
Jul 22, 2026
SigmaRoc plc
Another positive H1; FY26 expectations maintained
SigmaRoc (SRC) has once again demonstrated the resilience of its business model, delivering a solid set of H1 results underpinned by core volume growth, pricing discipline and margin expansion. Management has reiterated confidence in delivering FY26 consensus expectations and, despite a mixed end-market backdrop, highlighted encouraging trends across a number of key areas. Given SRC’s strong track record, ongoing synergy delivery and significant M&A firepower, we believe the group remains well positioned to deliver further progress this year. At 121p/share and c.7x FY26 EV/EBITDA, we continue to view current levels as an attractive entry point into a scaled pan-European lime and limestone platform.
Greencore Group
Q3 update – solid statement; guidance raised
Greencore delivered a solid Q3 trading performance, with volume/mix up 2.3% (H1-26: +0.8%), supported in part by a strong manufactured volume recovery of +1% in legacy Bakkavor (Q2-26: -1.3%). Q4 has started positively, with this volume momentum carrying over from the latter half of Q3. Synergy delivery made a ‘fast start’, with management now guiding to in-year cost synergies of c.£15m in FY26. Profit conversion also continued to track ahead, with management now anticipating FY26 adjusted operating profit of £234-242m, above current market expectations (c.6% midpoint beat). Overall, we believe today’s statement offers a reassuring response to many of the uncertainties raised at the interim results and, on first read, we anticipate upside to our forecasts.
Diploma plc
Increasing forecasts and new price target of £84/share
We our upgrading our Diploma forecasts following the new guidance provided in the positive Q3 trading statement on July 16th. We continue to see upside risk to our forecasts looking ahead. We increase our price target to £84/share. We see similar upside and downside in our bull/bear case and maintain our ‘Neutral’ rating.
UK economy
Energy prices help inflation to moderate further in June
Headline inflation moderated to 2.6% for the UK in June, well below 3.1% last forecast by the Bank of England (BoE). Lower energy prices benefitted from last month’s ceasefire, though renewed war in the Middle East this month means higher energy inflation in July is assured. Services inflation moderated to 3.6%, and the BoE’s preferred measure of underlying services inflation was at its lowest since the start of 2022. This adds to dovish labour market results published yesterday. While no change to Bank Rate is likely at next week’s BoE meeting, another vote for a hike would not be a surprise.
