DAVY VIEW

We have once again upgraded our CRH forecasts following the group’s latest trading update. Based on our forecasts, profitability will have improved on a like-for-like (lfl) basis in 2020 despite the impact of the COVID-19 pandemic. That alone speaks to the resilience of the business model and management’s rapid reaction to the crisis. The group exits 2020 in a position of considerable financial strength. That provides lots of options (capex, dividends, acquisitions and buybacks) to create further value for shareholders. The stock remains our top sector pick with an increased price target of €42 per share.