DAVY VIEW

The Breedon share price is once again lost in the fog of Brexit and stock overhangs. The share is now approaching April lows despite activity recovering in recent months, the Cemex deal largely finalised and liquidity concerns firmly put to bed. Short-term visibility is admittedly low, but the long-term fundamentals remain sound, backed by government support for housing and infrastructure. We upgrade our estimates but see scope for more should markets continue to recover. We reiterate our ‘Outperform’ rating and 98p price target (c.40% upside from current price).