Kingspan Group - Trading update to provide insight into state of play with cost management a focus

Davy Research
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Kingspan’s update on April 27th should provide an informative insight into current trading. An important current challenge — rising input prices — has been well documented and while a short-term headwind, it should not detract from the longer-term direction of travel. The group’s opportunity set remains extensive: geographic expansion; market share gains; the impact of new and/or enhanced products; and strategic acquisitions. The most recent evidence suggests that Kingspan remains in great shape although it is inevitable that the heady growth rates of recent years will taper. While the share price has stubbornly remained around the €30 level for two months now it is still up almost 15% year-to-date. The stock is trading at its five-year average P/E rating and we remain upbeat on the group’s prospects.