JPMorgan Upgrades Kingspan, Sets €130 Target
JPMorgan has upgraded Kingspan plc to Overweight from Neutral and increased its price target to €130, up from €95. The upgrade is driven by strong earnings momentum linked to Kingspan’s data‑centre exposure, where order intake for its Advnsys unit has nearly quadrupled, and a U.S. roofing venture that will be detailed at a capital markets day in Oklahoma on 10 November.
The bank advises investors to be selective on European building‑materials stocks in H2 2026. The sector has depreciated roughly 10% year‑to‑date. A rotation toward lighter‑weight “Lightside” products has outperformed heavier “Heavyside” names, with Lightside stocks gaining about 10% versus a 6% decline for Heavyside since Q2 earnings.
Holcim and Sika have been placed on Catalyst Watch ahead of their third‑quarter results scheduled for 23 October. JPMorgan’s estimates project a like‑for‑like EBIT growth of 13% for Holcim, exceeding the company’s own guidance of 10% and suggesting potential for an earnings upgrade. For Sika, meeting the upper end of its full‑year guidance would imply EBITDA of roughly CHF 2.24 billion, about 2% above consensus estimates.
Amrize has been placed on Negative Catalyst Watch ahead of its results in the week of 26 October. The analysts highlighted the risk that the roofing group’s 2026 growth targets could be compromised by a lack of storm activity observed so far this year.
JPMorgan retained Overweight ratings on Heidelberg, Buzzi, Saint‑Gobain and Travis Perkins, and Neutral ratings on Geberit, Rockwool and Howden. Heidelberg is described as attractive on valuation, trading at approximately 7 times its estimated 2027 EV/EBITDA with a free‑cash‑flow yield of 7%, though the note warns of possible further earnings downside in the second half. Saint‑Gobain’s valuation is considered “very compelling” at roughly 6 times its estimated 2027 EV/EBITDA, but the bank sees limited scope for near‑term positive surprises.
The analysts, led by Elodie Rall, note that inflation and interest‑rate uncertainty continue to cloud the outlook through year‑end, even as opportunities emerge across both the Lightside and Heavyside sub‑sectors.