Davy Morning Equity Briefing
Jul 13, 2026
Grafton Group
Full year adjusted operating profit guidance maintained
Grafton has reported a modest increase in organic revenues for the first half of the year, boosted by good growth in Iberia and the Island of Ireland. Full year operating profit guidance is unchanged. The update follows a recent well-received Capital Markets Event that set out ambitious, but credible, financial targets out to 2030. We continue to believe the subdued Grafton share price and valuation (2027 P/E of circa 10x) is at odds with the medium-term outlook for the group.
Economics weekly
Moderating property price growth of c.6% is likely in May
After a relatively quiet week of economic data releases last week, this week sees May residential property prices and employee payrolls data due for Ireland. US consumer and producer prices data for June as well as UK gross domestic product (GDP) for May will also be published, as well as various speeches by central bank officials. Further moderation in Ireland’s residential property prices – perhaps below 6% – appears likely. A strong result for employee payrolls would be consistent with exchequer returns data for May and June; as we highlighted last week in our updated economic forecasts, Ireland’s labour market remains robust.
