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Kingspan tipped to gain from EU's 30-year green wave agenda


Kingspan CEO Gene Murtagh

Kingspan CEO Gene Murtagh

Kingspan CEO Gene Murtagh

Kingspan is among the European companies best placed to benefit from the European Union's 'green wave' ambition to cut CO2 emissions by over 30pc in the next decade and to achieve carbon neutrality by 2050, according to analysts at equity research boutique On Field.

The firm increased its price target on Kingspan to €86 per share from the previous level of €77. The shares closed in Dublin yesterday at €67.85 each.

Kingspan's main business is construction insulation, increasingly required under building regulations in order to reduce the energy required to heat and cool new buildings.

Analysts at On Field said chemicals construction firms, insulation companies and building materials distribution are best positioned to benefit from the anticipated growth driven by the "green wave" policies.

Over 85pc of Kingspan revenue is "exposed to products/services that should directly benefit from green regulations and incentives", second only to Swiss specialty chemicals company Sika among stock market companies looked at, and well ahead of closest Irish peer CRH in terms of standing to gain from regulatory and policy changes, the research found.

Kingspan last month published financial results that beat analysts' expectations in terms of the impact on the business of the Covid pandemic.

Results for the first half of the year showed revenue declined 8pc to €2.1bn.

Trading profit fell 16pc to €200m - a much better result than the company or analysts had foreseen, given the global pandemic.

Still, CEO Gene Murtagh warned the recessionary effects of the pandemic are likely to be felt into next year, especially once government supports begin to be withdrawn around the world, he said.

The EU has placed a green recovery at the heart of its coronavirus pandemic plans.

Irish Independent