Kingspan Group Kept at Buy as Berenberg Notes 'Impressive' Organic Growth in H1

12:00 PM EDT, 09/09/2026 (MT Newswires) -- Berenberg retained its buy rating on Kingspan Group (KRX.IR), with a price target of 120 euros, noting the company's "impressive" organic growth in the first half after a growth rate slowdown over the last three years. "However, the events of H126, with impressive organic growth supplemented by significant acquisition activity, have re-energised the EBITA growth outlook, which we see at 18% on average over 2026-28 and 14% over 2026-30. Moreover, with the group commencing the ramp-up of its new roofing operations in the US, with firepower remaining for further M&A and with the hope of a more favourable market backdrop in Europe from 2027, we see scope for further acceleration in growth," analysts said in a construction market outlook report published Tuesday. The research firm also views the Irish building materials company's planned acquisition of power management systems business BMC Manufacturing Group as "strategically smart" and "attractively priced." Earlier in August, Kingspan agreed to purchase BMC for an initial consideration of 850 million euros, with a further potential deferred consideration of up to 50 million euros upon achieving "significant" profit targets. For 2026 and 2027, analysts expect the group to see an 18% and 24% annual growth in EBITA, respectively, taking into account underlying trading and the BMC deal. "As such, we think Kingspan has clearly reestablished itself as the high-growth proposition in the European building materials space and, in that regard, we think the valuation fails to appropriately reflect this reacceleration in mid-term profit growth," Berenberg added.