DAVY VIEW

For Wienerberger (WIE), 2019 is an auspicious year as the group celebrates its 200th anniversary. The group's annual Capital Markets Day (CMD) therefore provided a good opportunity to reflect on the progress made and the opportunity into the future. The event covered many contemporary themes increasingly common across the construction industry, namely: a desired shift to offering a wider range of solutions; the increasing importance of digital; the focus on generating operational efficiencies; and a more vigorous and structured approach to capital management and allocation. While any new information was largely incremental, the event nonetheless confirmed that WIE is in good shape. The stock's valuation remains underwhelming and we reiterate our ‘Outperform’ rating.