DAVY VIEW

Saint-Gobain’s (SGO) H1 results were slightly ahead of market estimates. The group saw EBIT halve in the period despite a raft of accelerated cost measures, government help on employee costs and a supportive price-cost spread. June sales figures are better (+3.7% yoy), although two extra trading days are inflating that figure. Good cash generation and new cost measures help, while guidance (H2 sharply better than H1) is already reflected in estimates. The stock has done well but with upgrades unlikely and visibility low, we believe it is up with events.