CRH - Upgrading forecasts following strong Q3

Davy Research
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We have upgraded our FY20 EBITDA forecasts by c.4% following CRH’s Q3 update. That pointed to a strong acceleration in organic profit growth, driven by solid end-markets but, more importantly, initial delivery on its long-term margin targets. That delivery is only just getting started and will ramp up as the group’s internal initiatives roll out over 2020 and 2021. That, combined with CRH’s sector-leading cash generation, continues to make for a compelling investment proposition.