Saint-Gobain Group - Strong Q1 reinforces positive stock view

Davy Research
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Saint-Gobain (SGO) had a strong Q1, exceeding elevated expectations for the period. At first glance, guidance appears cautious; however, the management call reassured in this regard. The guidance is a minimum target likely to be exceeded in our view. Cost inflation remains the risk, but for now it appears manageable via higher prices. SGO is increasingly benefitting from improved trends in renovation (France/EU Green Deal), new residential construction (US) and improving demand in mobility markets. Combined with delivery on strategic initiatives (portfolio mix, cost savings), this underpins our positive stock view.