Grafton Group

Taking the hit but will bounce back

  • Sectors : Builders Merchants
  • Companies : Grafton Group

Ratings and price correct at time of issue.

  • Grafton Group

    Closing Price: 644p

  • RATING 21/05/20

  • PREVIOUS RATING 15/12/15



We estimate the impact of COVID-19 will leave Grafton’s earnings by the end of next year over 25% lower than what was expected prior to the pandemic. Current circumstances are unprecedented with considerable lingering uncertainty, but Grafton is well placed and its cash generation should stand out even when earnings are challenged. The stock has been volatile but at a little over 14x our updated 2021 EPS forecast looks reasonably valued for now. Accordingly, we are changing our recommendation to ‘Neutral’.

Download full report with analyst certification and important disclosures

May 21 2020, 06:45 IST/BST