Davy Morning Equity Briefing
Mar 12, 2026
CRH
Another strong year of growth ahead; significant upside from 2030 targets
Following another strong year of delivery in 2025 and a robust set of FY26 guidance figures, we increase our CRH price target (PT) to $144 with a high level of confidence in our new, increased estimates. Analysis of the group’s 2030 targets suggests material equity outperformance (potentially up to $200/share) is on the way.
Volution
Continues to power ahead
The Volution machine powers on with the group reporting adjusted operating profit growth of 22% for the six months to end-January. The group’s consistent outperformance can be traced to the potent combination of vigorous organic growth and the stimulus from an active M&A strategy. The recent ACI deal continues the latter theme and a first-time six-month contribution in the second half of the current financial year and in H1 fiscal 2027 will help sustain the group’s earnings momentum. The recent pull-back has left the stock 12% below its recent peak after it went over 700p for the first time and clearly makes the valuation case more interesting.
Mincon Group
Material upgrades follow FY25 results; target price moving to 82c
2025 was a successful year of growth and self-help initiatives at Mincon. The business has maintained momentum into FY26 and we are increasing our forecasts to reflect higher sales and margins in the year ahead. Our revenue forecasts are c.7% higher for the current year and EBITDA is c.10% higher. We increase our target price to 82c, implying over 20% upside from current levels.
dsm-firmenich
FY26 guidance in line; medium-term targets reaffirmed with phased delivery
Ahead of its Investor Event today, dsm-firmenich has outlined FY26 guidance of 2-4% organic sales growth and an adjusted EBITDA margin of around 20%, broadly in line with our expectations. The outlook reflects a slow start to FY26 amid continued macro softness and FX headwinds. While management reaffirmed its medium-term ambitions and raised its cash conversion target to >14%, the trajectory implies a more gradual delivery. Performance is expected to accelerate through FY27 as conditions normalise, with its medium-term organic growth and EBITDA margin targets expected to be reached from FY28. Today’s event will provide more detail on the constituent parts.
On the Beach Group plc
Temporarily suspending guidance; confident in medium-term ambition
On the Beach Group (OTB) is one of the UK's largest online package holiday specialists. While the group has limited exposure to destinations in the Middle East, it has experienced a significant slowdown in demand following the onset of conflict in the region, particularly to destinations such as Turkey, Greece, Cyprus and Egypt and as a result is temporarily suspending guidance. The Board remains confident in the delivery of the group's medium-term ambition of £2.5bn Total Transaction Value (TTV), £100m EBITDA, £85m PBT and 38.7p EPS.
