Davy Morning Equity Briefing
Jun 11, 2026
Grafton Group
Ambitious 2030 targets set
Grafton’s Capital Markets Event (CME) will make the case for a business that is financially robust, highly cash generative, operationally diversified and strategically set up for growth and progress. Our initial reaction is that the targets outlined for the remainder of the decade are ambitious but realisable. We believe the outlook for the group is positive, and our price target of 1150p would suggest potential upside of over 35%.
Forterra plc
CFO to leave the group
After 20 years at Forterra, Ben Guyatt will leave the business in October 2026, allowing time for an orderly transition to a successor. The search for this successor has already commenced.
Origin Enterprises
Q3 trading update – executing in a volatile environment
Origin Enterprises’ trading update reflects solid execution in the seasonally important third quarter against a volatile macro environment. Supply chain challenges stemming from the Middle East continue to pressure key inputs such as fertilizer, where inflation is outpacing crop prices – thus impacting farm sentiment. FY26 EPS guidance is pitched at 52-55c, which compares against our current forecast of 54.7c – on first look, we envisage moving towards 53.5c. FY26 results will be announced on September 22nd 2026.
Wizz Air Holdings
FY26 in line; summer headwinds remain
Wizz Air has reported a FY26 net profit of €1.3m (Davy: -€75.5m, consensus: -€33m), in line with May guidance of breakeven to slightly positive. Under-utilisation of fleet drove ex-fuel CASK +5.8%, offset by fuel cask -9.6%. It achieved flat RASK and loads on ASK growth of 8.5%, outpaced by seat growth of 10.5%. The balance sheet strengthened and leverage now stands at 3.7x (from 4.4x). Looking ahead, the outlook remains mixed as elevated capacity growth this summer (Q1 ASKs +15% and Q2 ASKs +20%) is coupled with impacts from the Middle East conflict. RASK declines of mid- to high-single-digits are guided in Q1, improving to flat for Q2. Cost guidance is for flat to up low-single-digit ex-fuel, while fuel CASK inflation will be helped by 84% hedge position for H1. Consensus for FY27 stands at net loss of €225m (Davy: -€96.9m).
