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Jul 8 2020, 06:30 IST/BST
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
From the April lows, Q2 construction activity has rebounded quicker than we first thought. That suggests the potential to surprise positively, especially for companies with large exposure to Central Europe and the US. Less clear is the impact on margins and especially cashflow. In that regard, we expect results to highlight those high-quality companies with the ability to adapt quickly and protect cash in turbulent times. Despite the quicker recovery, we expect the companies to guide cautiously given still high levels of uncertainty. We continue to see CRH and Buzzi Unicem as best-placed in the sector. We cut Saint-Gobain to ‘Underperform’ given concerns around industrial markets, glass prices and following strong recent share price gains.