Davy Morning Equity Briefing
Aug 12, 2026
Kingspan Group
BMC deal accelerates data centre growth opportunity
The BMC acquisition ticks all the right boxes for Kingspan. It is a fast growing, complementary business; it will double the group’s potential addressable market share in the rapidly growing data centre market; it is materially earnings accretive and returns enhancing; and, while it is the group’s biggest acquisition to date, it will be undertaken without impacting Kingspan’s financial wellbeing. Our forecasts are under review, but even off what will be a higher base it appears that Kingspan is positioned to deliver earnings growth of over 25% in 2027. We suspect diluted adjusted EPS approaching €6 next year is becoming a possibility. The Kingspan share price justifiably reacted very positively to the recent interim results, but the BMC deal should help the stock to kick on further.
Hill & Smith
Strong H1 2026 results
Hill & Smith (HILS) has reported strong interim results leading it to raise full year guidance. The US business had strong organic revenue growth and margin expansion, which was partially held back by continued weakness in the UK & India Engineered Solutions division. Momentum remains positive and leverage remains low.
Greggs plc
Burden of proof shifts to execution: moving to ‘Neutral’
Greggs shares have re-rated meaningfully since its interim statement, supported by stronger near-term margin delivery. We continue to recognise the quality of the store rollout model, improving free cashflow (FCF) conversion and modest leverage; however, we believe these strengths are more than fully captured in the current valuation. The central questions around medium-term organic growth and the impact of sustained cost pressure remain unresolved. Given the model’s sensitivity to both factors, clearer evidence of consistent execution is required to underpin the current valuation and support any further re-rating. We raise our price target to 1800p but downgrade our rating to ‘Neutral’.
Mincon Group
Model update
Despite unchanged earnings at an operating profit level, we believe risks are tilted to the upside for Mincon in FY26. There is c.15% upside to our price target, and we reiterate our ‘Outperform’ rating.
