Davy Morning Equity Briefing
Aug 07, 2026
Stelrad Group plc
Impressive execution continues
Stelrad continues to deliver impressive and resilient results against an unhelpful market environment. Once again, the group’s performance is characterised by impressive operational management and cost discipline. It is positive that Stelrad’s outlook for the year is unchanged, which suggests the group should continue to make further progress in 2026. The stock offers good value at a current P/E multiple of under 11x.
Kingspan Group
Beginning to motor with significant earnings upgrades likely
Kingspan enters the second half of the year with a real sense that the group is picking up momentum at pace. Fresh guidance is for trading profit this year some 7% above the current consensus estimate, which implies a sharp acceleration in H2 growth to around 25% year-on-year. In effect, Kingspan is suggesting it will achieve our 2027 trading profit forecast a year early. Moreover, we are likely to increase our 2027 trading profit forecast by circa 15% to circa €1.3bn. This is a growth rate expectation unmatched in the building products sector, and we are now confident a new era of powerful earnings growth for Kingspan is fully underway. This should prompt a fundamental reappraisal of the investment case with strong justification for a re-rating.
DraftKings
Q2 miss, but focus will likely land on reiteration of guidance
DraftKings reported Q2 results that were a little behind expectations, with the statement noting that performance would have been better than anticipated ex-sports results and higher levels of customer acquisition. It has, however, reiterated its guidance ranges for the year at both revenue and aEBITDA. The rhetoric in the shareholders letter on the initial success of its Prediction Market (PM) offering in non-regulated states is quite bullish, noting that engagement has surpassed its expectations. It is early innings, but we would take some comfort that the big online operators can attract PM customers in sports despite Kalshi’s headstart. DraftKings has reiterated FY guidance despite a small miss to expectations in Q2, with its main competitor taking the opposite tack. Focus on the earnings call will be on its confidence in delivering in the core against heightened competitive intensity.
FBD Holdings
Strong results on continued delivery against objectives
FBD has reported a strong outcome for H1 2026, with continued delivery against its strategic objectives. Results are well ahead of expectations, underpinned by ongoing disciplined growth in customer numbers, a more benign loss ratio and increases in investment returns while maintaining a strong solvency position. We will review our forecasts post results, with guidance conservatively remaining unchanged. The next phase of FBD’s strategic development is likely to assess the sustainable level of its ordinary dividend, which in our view is likely to increase.
easyJet
Recommended bid at 715p
The easyJet Board has agreed the terms of a recommended acquisition of easyJet by Apollo. Under the terms of the offer, shareholders will be entitled to receive £7.15 per share in cash, valuing easyJet's equity at approximately £5.7bn. The Board has unanimously concluded that the cash offer is fair and reasonable and intends to recommend that shareholders vote in favour of the transaction.
TRIG plc
H1 performance as expected
Following TRIG's Q2 net asset value (NAV) update last week, there are few surprises in today's H1 results. The combination of solid cash generation, improving dividend cover and a reiterated dividend target remains supportive, although this was partly offset by the NAV decline reported in Q2. At 0.77x P/NAV, TRIG continues to trade at a meaningful discount to NAV, albeit broadly in the middle of the listed renewables peer group range of 0.65-0.86x. Looking ahead, progress against the strategic priorities outlined at its May Capital Markets Seminar, particularly around asset disposals and portfolio optimisation, will be key to driving a sustained re-rating.
Irish economy
Economy’s strength evident in blowout tax receipts for July
The key takeaway from July's exchequer returns is ongoing real-time strength for the Irish economy into H2. The labour market remains robust, as indicated by income taxes, social contributions and July unemployment data. Consumer spending indicators are also very strong. Together with spending growth broadly in line with profile, we continue to expect a large budget surplus this year – in excess of last year’s €11.2bn.
