Davy Morning Equity Briefing
Aug 18, 2026
Kingspan Group
Seeing is believing; upgrading 2027 earnings forecast by over 25%
Kingspan has stepped confidently into a new and exciting growth phase. Interim results were enthusiastically received: full year guidance was raised with mid-teen profit growth flagged for 2027. Following this was the BMC acquisition, and there is now the heady prospect of group earnings jumping by over 50% in just two years. Not surprisingly, the stock has responded positively to this prospect. But we believe there is much more to play for, with the recent share price appreciation more than matched by earnings upgrades of over 25%. Our revised price target is €133, which gives upside of over 30%.
UK economy
Another dovish labour market update for the UK
As we expected, this morning’s labour market update was again dovish. Private sector wage growth continues to track below the Bank of England’s (BoE) estimate for what would be consistent with its inflation target. Employee payrolls were revised downwards for June, and the first estimate for July is another soft print. The unemployment and vacancy rates also remained unchanged. We think the longer this year continues with dovish results, the less plausible it looks that Bank Rate will be hiked before year-end.
