Resilient first-half performances from the sector showed a greater degree of resiliency driven by pricing momentum, energy cost tailwinds as well as the enactment of various fixed cost reduction measures and use of government support.
This led to meaningful upgrades for full-year forecasts, but “not so much for 2021”.
Analysts at the investment bank now see an opportunity to take profit on some of the stocks that have particularly rerated and where valuation “looks full”.
Ferguson and Kingspan were both cut to ‘neutral’ from ‘overweight’ with both trading significantly above the long-term average, “although we would look for any weakness to revisit the story for both stocks”.
The analysts today trimmed the share price target for Ibstock to 175p from 190p, and nudged it higher for TPK to 1,050p from 1,040p.