DAVY VIEW

SigmaRoc’s Q3 trading update reveals an inflection in underlying EBITDA (from -3% in H1 to up 2% in Q3) despite difficult end-markets (volumes down 3% in Q3). This makes full-year EBITDA expectations eminently achievable with a solid Q4. Medium term, we see strong cash generation – driven by its position in the lime market, well-invested asset base and margin resilience – meriting a much higher valuation and our price target remains £1.05.