Davy Morning Equity Briefing
Oct 28, 2025
permanent tsb Group
Redemption of AT1
The redemption of the AT1 is a further sign of capital structure normalisation for PTSB. Material catalysts remain and will form key parts of increases in returns in the coming years at PTSB.
C&C
H1-26 – on track to meet full-year expectations
With the mid-September trading update capturing key headlines, today’s update contained little by way of surprise. The business continues to execute to plan against a challenging market backdrop. The statements note the requirement for business model adaptation to harness scale while de-complexing and driving efficiencies – which will take 12-18 months to effect. We envisage no material change to our forecasts.
CRH
Q3 results to highlight consistent profit growth
We believe a positive Q3 after a weather-impacted Q2 will leave CRH well on its way to another year of double-digit profit growth in 2025. The stock has done well year-to-date, outperforming the S&P500 and its closest US peers. Further re-rating is likely, and we reiterate our ‘Outperform’ recommendation.
Danone
Q3 update – strong volume growth continues
Q3 like-for-like (LFL) growth came in above consensus at +4.8% (VA: +4.3%), driven by further growth in volume/mix across all categories (+3.2%), with strong momentum into the final quarter. FY25 guidance has been confirmed. Danone has continued to deliver impressive volume growth amid a challenging environment, consistently outperforming its peers. We are increasing our price target to €85, implying c.9% upside.
Symrise
Q3 update – FY25 organic sales growth moderated
Q3 organic sales growth of 1.4% reflects challenging market conditions and idiosyncratic exposure to more commoditised Aroma Molecules. Pet sales were flat in the quarter, with Consumer Fragrance and Fine Fragrance delivering a credible mid-single-digit sales growth. Symrise has lowered its 2025 organic sales growth target for the second time this year. It now expects 2025 organic growth of 2.3-3.3% (Davy: 3.1%) from 3.0-5.0%. The net impact on full-year EBITDA will be modest. Achievement of its long-term growth target (5-7%) in 2026 looks a tall order.
