DAVY VIEW

Recent events will represent a sharp hit to Kingspan’s momentum, but this is arguably reflected in a share price circa 30% off peak. We now model for earnings in 2021 to be around 15% lower than previously expected and a little below the 2019 level. Despite the earnings disruption, there is no change to the structural thesis and Kingspan remains a quality play on the mega-theme of the drive to de-carbonise buildings. In addition, the crisis may, in time, throw up some interesting external opportunities; Kingspan, with a very strong financial position, is well-positioned in this regard.