UBS downgrades Kingspan stock to Neutral on limited market growth

Published 14/10/2025, 08:42
UBS downgrades Kingspan stock to Neutral on limited market growth

Investing.com - UBS downgraded Kingspan Group PLC (ID:KSP) to Neutral from Buy on Tuesday, while reducing its price target to EUR74.00 from EUR91.00.

The downgrade reflects UBS’s new market forecasts suggesting Kingspan’s weighted end-market growth will be limited to 1-3% in 2026/27, below overall construction growth of 2-4% and slower than the company’s historical growth of approximately 4% during 2014-19.

UBS believes Kingspan is fairly valued based on a sum-of-the-parts analysis using target multiples for ADVNSYS and the remaining business segments, making a Buy rating no longer appropriate.

The investment bank also cited the growing complexity of Kingspan’s equity story as a factor in the downgrade, noting that shares have already experienced a de-rating partly for this reason.

Despite the downgrade, UBS indicated that a Sell rating would be unwarranted, as the firm believes Kingspan’s growth outlook remains undervalued at the current multiple, though it expects the market’s "complexity discount" on shares to persist over the next 12 months.

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