Breedon’s trading update shows end-markets rebounding strongly through July and August. Sales in the two months combined were up year-on-year (yoy), albeit they included an initial contribution from Cemex. Guidance has been reinstated with the H2 EBIT outturn now expected to be flat. That points to a FY 2020 result c.16% better than market estimates. Having weathered the storm, the group now looks well placed to benefit from accelerated infrastructure spending and reap the benefits of the recently completed Cemex acquisition. We reiterate our ‘Outperform’ stock rating and 98p price target. Group CEO Pat Ward and CFO Rob Wood will present at our Industrials Conference today at 12 noon (see Davy website for details).
You can email us with your enquiry by completing the form below.
Warning: The value of your investment may go down as well as up and you may lose some or all of the money you invest. Past performance is not a reliable guide to future performance. Investments denominated in a currency other than your base currency may be affected by changes in currency exchange rates.
Davy Select is designed for investors who are comfortable making their own investment decisions, without financial advice; this is known as “execution-only”. Execution-Only is not for everyone. You should ensure that you fully understand any investment and the associated risks before making a decision to invest. Alternatively, Davy can arrange for you to open a different type of account, where we can advise you in relation to investment decisions, or where we can manage investments on your behalf.
This website does not constitute investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any particular person or persons. Prospective investors are advised to make their own assessment of the information contained herein and obtain professional advice suitable to their own individual circumstances.
J & E Davy, trading as Davy, is regulated by the Central Bank of Ireland. Davy is a member of the Irish Stock Exchange, the London Stock Exchange and Euronext. In the UK, Davy is authorised by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our authorisation and regulation by the Financial Conduct Authority are available from us on request.