Davy Morning Equity Briefing
Sep 03, 2026
Grafton Group
Progress in H1 and full year guidance unchanged
Grafton has announced a solid set of interim results, and with guidance unchanged the group remains on track to increase profits this year. This will be helped by the two important acquisitions of Cygnum (Ireland) and Mercaluz (Spain) in H1, with the integration of both on track. The stock has deservedly traded higher (up >20%) since the Capital Market Events in June but remains keenly valued.
Kingspan Group
Raises €850m from Green Public Bond
Kingspan has successfully completed a debut green bond sale. It has raised €850m from a two-part, 4-year and 7-year note at a fixed average coupon of 4.1% per annum. The bond was significantly oversubscribed and will support the group’s ongoing commitment to investment and expansion. Kingspan has proved itself an agile and astute allocator of capital through the cycle. We have a strong conviction that the group has entered a new exciting phase of growth and that it is poised to deliver excellent results and returns over the remainder of the decade and beyond.
Flutter Entertainment plc
Enough swallows to make a summer?
Momentum in US sports betting undoubtedly negatively surprised us. There are a number of potential explanations for this. To compound the issue, FanDuel also lost share. In International, 2025 was something of an annus horribilis with a draconian tax hike in the UK and a politically motivated closure of the Indian online sector. As we stand today, the regulatory situation in Flutter’s three key International markets is more certain. US state data are finally beginning to show some green shoots in sports, and iCasino goes from strength to strength. Prediction markets remain a noisy distraction, with the only certainty being that their regulatory framework continues to tighten; just how tight that noose gets will likely be determined in the Supreme Court.
Jet2 plc
Encouraging outlook; move to Main Market
Jet2 provided a somewhat encouraging outlook with load factors +1.5 ppts (previously +1.2 ppts) and booked-to-date passengers +8.8% (previous statement +7.1%). Customers have continued to book closer to departure, underpinned by attractive pricing. Consensus current stands at operating profit of c.£258m for FY27 and c.£400m for FY28 (Davy £277m FY27, £473m FY28). We are likely to move this downwards towards consensus given fuel price moves. The Board also announced a move to the Main Market of the London Stock Exchange during this financial year.
