JP Morgan Upgrades Kingspan Group PLC on Strong Data Centre Momentum
JP Morgan has upgraded its rating for Irish building materials company Kingspan Group PLC (ISE:KRX) to 'overweight' from 'neutral', citing strong earnings momentum driven by the firm's data centre exposure. The analyst noted that order intake in Kingspan’s Advnsys segment, which focuses on data solutions, has nearly quadrupled but remains undervalued compared to European capital goods peers with similar margins and growth prospects. The bank highlighted a 15% valuation discount for the Advnsys division relative to its peer group. JP Morgan analyst Elodie Rall set a price target of €130 per share, suggesting potential upside from both data centre performance and Kingspan’s strategy in the U.S. commercial flat roof market. Kingspan is also positioned as a preferred play during inflation due to rising steel costs driven by tariffs, EU carbon policies, and higher carbon allowance prices.
Topics: analyst upgrade capital markets day data centres steel costs